Generally, at a public auction, there are several people who show up, ready to bid.
Usually, there are speculators, investors, contractors, and from time to time, home buyers.
So I seriously doubt this property will sell for this price. But in case you are curious as to how this process goes, contact the County recorder's office for details of the auction, and check it out. It's a good way to witness and learn how auctions work.
On another note...yes, there are properties selling for incredible prices in Oakland. Because there are so many foreclosures and short sales, these properties are competing with each other for buyers, that's why they are priced very aggressively. It is not unusual to be in a bidding situation for properties that have the most potential as my buyers and I have seen the last few months. Fortunately, my buyers were serious, and we kept looking until we were successful in finding the right homes for them.
How may I help?