Last year, cheap land for sale and commercial property foreclosures accounted for a significant percentage of total property sales in Mecklenburg County, North Carolina. The 2010 foreclosed commercial real estate sales set the highest percentage record for the whole 2000 decade. The amount of commercial real estate sales in 2010 was also one of the lowest for the whole decade.
The number of Raleigh foreclosures and distressed property sales in various parts of the state accounted for a huge percentage of total real estate sales in 2010. In Mecklenburg County, commercial foreclosures made a mark during the period by accounting for a third of total property sales. There were 268 distressed commercial sales in 2010, one of the lowest ever recorded in the county in 10 years. The figure was equivalent to around 20% of the commercial sales transactions posted in 2000.
In percentage form, 36% of Mecklenburg commercial transactions last year were either distressed of foreclosed. The percentage was double the 18% posted the year before. Excluding foreclosures in NC that were sold between 2009 and 2010, yearly average of distressed commercial real estate sales in the county is around 6.2% for the decade. Real estate analysts have stated that the huge percentage of total commercial sales accounted for by distressed properties showed that the market is trying to deal aggressively with the problem.
They stated that owners and lenders are trying to cut losses brought on by cheap land for sale and low-priced foreclosed commercial properties. Analysts also stated that, for now, the huge amount of distressed commercial real estate sales will have a negative impact since they can pull the prices of properties even lower.
However, they asserted that for the long haul, this might prove beneficial because it will help clear excess inventories of distressed properties. Real property experts have also stated that the current status of the property market, where one can find foreclosed homes for sale and commercial properties at almost half their original prices, has made people aware that it might be wiser to walk away and cut down losses instead of hanging on to a market that might take a very long time to recover.
According to local analysts, the flood of cheap land for sale and bargain priced commercial properties resulted in lower dollar sales volume, with 2010 posting a total of a little over $338 million. The figure was higher than the 2009 level of more than $230 million, but way below the 2007 record of $1.5 billion.
Follow us:
Written by Alex Rolim.
