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Georgia Commercial Homes for Sale Hit by Recession

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By : John Cutts    99 or more times read
Commercial homes for sale and mixed-use projects all around the country were not spared by the recession that hit the U.S. In Georgia, the Castleberry Point development which was started in 2008 ended up with only about 60% of its units sold or occupied. The project was considered a promising one and had cost developers Jerry Miller and Bruce Gallman more than $30 million to build.

The situation of residential and mixed use development projects also suffered from high rates of foreclosures in various areas of the state, with the condition of foreclosed homes for sale in Decatur, GA being just one example. According to Gallman and Miller, two years after the project started, they feel lucky that they were able to sell more than half of the units at Castleberry.

With the problem of foreclosed homes in Georgia showing no sign of abating, most developers believe that not a lot of buyers would be interested in purchasing units from commercial developments. The Castleberry developers have revealed that a big number of their pre-sale clients decided to walk away from the agreement for fear of losing their investments.

According to real estate market observers, the recession and the housing market crisis both instilled fear among home buyers and property developers and have caused a lot of commercial homes for sale to remain unsold. A huge number of real estate development projects, along with their lenders, also failed following the economic downturn and the collapse of several stock market big names.

Gallman and Miller might be considered lucky for even finishing their project amidst the recession and the escalating number of foreclosure homes for sale. However, the developers admitted that they are still trying to dodge the foreclosure bullet and have implemented price cuts and lender concessions just to stay afloat. They added that they are not putting much hope to reclaiming their investments, much less gain any profit. The Castleberry developers stated that they just want to pay their banks and cut their losses.

As the housing market crisis and the economic downturn continue to hit almost all areas of the U.S., majority of real estate developers and owners of commercial homes for sale are satisfied just to wait it out until the economy and the real property market show some improvement.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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