New-York tribune., 1869-05-08
REAL ESTATE.
Nrw.YoRK Friday, May :, 1869.

A correspondent, an extract from whose
letter printed this morning. asserts that the supply
Of suburban lots now Vualy in the market is rather
uuder than above the demand. The proposition above
quoted IS susceptible OF being misunderstood we VIII
endeavOr 10 develop its latent ambiguity;
1 The supply or suburban lots now in the market
,s e number OF such lots which can be bought to-day
at market prices. The market price is the sum ior
which lots in any particular locality were last Sold In
fact II ia little more than this Letus suppose that
three months ago, Westchester lots were sold for
certain sum- II there has been decline in the market
rrce the market valuo OF those lots to-day, is the sum
Maid three months ago, plus Onequarters interest on
that sum- plus onefourh Of the annual tax, minus one
fourth Of any revenue which may be annually received
| from the lots
The demand for suburban lots is the number OK lots
which buyers willing to take at the market price, as
defined above The buyers made OF two classes
those who buy speculative purposes and those who
purchase for immediate improvement The first buy be-
cause they think that twO five, ten years hence they
can sell again for what they have paid today plus
the interest which they have lost on their cap
ital plus the taxes and assessments which they
have paid, and get beside fair profit on their in
vestment The slightest acquaintance with hnan
cIal matters show that such calculations are often
disapponted 1t is true that for several years tho
market value Of all kinds Of real estate In this city ana
its vicinity has risen with astonishing rnpdity, ana
specuators have been very fortunate But this fact does
not afford the slightest presumption that real estate VIII
continue 10 90 up at the rate for several years to
come but rather tho contrary. 1t by no means I'M
probabe that the present high price OF real estate s
not the result OF the competition Of the spectators
themselves. That such Is tho case with certain
descrIptions OF New.York and Westchester County
property is generally admitted. In the nature OF things,
there is impossblty that such may come 10 De the
case with suburban property generally
IL our correspondent IS correct in his supposlton
that the supply Of suburban lots less than the demand
it follows that the prices OF such lots are now or very
shortly will be, rising at more rapid rate than they
would be from tho mere accumulation Of interest and
taxes We omit the revenue which may be derived from
such unmproved lots too Insignificant TO be taken into
account Take the case OF MOHtcair. 1t certainly is
not impossible that landowners by asking too much
for their property, that tho railroad by not fur
nishing sufficient accommodation, or taxing too
heavily for Communication, that some other un
forseen circumstances may prevent the place
from growing like towns moro favored in these
respects The metropolis has been expanding rapidly for
nine years and yet how many places there are which
have received but insignificant amount OF Its immense
vitality. Nine years hence may find Montcair but little
changed But how will 1t DO with the spcenlator who has
invested in an Of villa plots miles distance from
the dcIOti At eight per cent p9r annum for taxes and
interest the acre which him 81 800 at the auction sale
will have absorbed 81 800 more, while Iat the outside 1t
may not be worth t2COO.
L. Lastly, word about those who buy for Immediate
Improvement The purchases OF these are the most I'M
poriant element In the case. and upon them the speeu
latIye demand should be founded. When We said that
the supply Of suburban lots in danger Of exceeding
the demand We meant that there danger that hold
ers Of such property would put higher prices on 1t than
the demand OF those purchasing likely 10 purchase
for Immediate improvement would justify. Our corre'
spondent must both the demand for Immediate i'm
proyemcnt aud the speculative demand and even then
we doubt IL ne right. Every rise IN tho market price
teuds 10 diminish tho demand Of those who buy
for immediate Improvement IL may or may
not diminish the speculative demand. 10 is quite as
likely as an attentive observer Of the real estate market
may See 90 20 diminish IT, and this is the Occa-
sion OF the odum IN which spccuaors are held by large
part Of tho community. But whether spectators be at
tractcd or repccd by rse In tho prco OF real es
tate whether the gambling spirit bc strong or weak,
certain u that the demand Of those who buy or build,
or rent for their is weakened Not many can
pay the increased price. True, every increase In the
numbers IN the average annual income OF the middle
classes tends the demand for habtatons Tor
those classes. The specuator must then consider this
annual income Of the middle
class % this metropolis De depended upon 10
for the ten years 10 come as II did during the
years which preceded the wari The prosperity Of New
York Is based It's commerce 10 Is manufacturing
city, but Is the most important principle Of It's
growth. As commercial metropolis its supremacy as
importing city Is much more marked than it's rank as
place OF export. Can the United States afford 20
importing from foreign countries AZ the rate OF 100000
per anuum than they pay fort II the imports OF
Now.York fall or one half within the next five
years, the general prosperity Of our country
suffer. but how will IL he with tho merchants OF
NcwYorl They already complain that business Is dull
that there too much competition that rents too HIGH
and they not alone In asking how Is all this TO endi
We may be rash but venture to express the conyc-
ton that II Will not end in their paying higher rents,
either for soros or dwellings II rents go down the city,
.r.THss
weakened II is not business to trace these consc
queDces further. and indeed. have already written
more than we intended 10 at tho outset.
We have 20 chronicle day another uncompoted sale
Of ew.Jcrscy real estate The property offered
sisted OF Patterson building plots Mr. Bcoclcr being tho
auctionecr Tho number Of Paterson people In attend
suspicously large. Only about hall the plots
wero struck down. They arc handsomely and conyen.
leniy situated like those at Highland Park, some Of
which were sold by auction on the ground last week
The latter SALE though by pleto success
resulted more fatterlngly than the one to-day.
On Monday, az the Exchange Salesroom, Mr.. James NJ
Miller will continue his sale Of the Cenralaye. property
belonging the estate Of Loring Andrews, esq Central
ave is being rapidly improved. large force OF
engaged In grading IT, laying out the sidewalk which
will be II feet wide planting shade trees laying gasppes
&c The property TO DO sold lies between Ccntralayo
and the Old Macombs Dam road not FAR from tho point
whcro they crossed by the High Brdgcroad,
ncn TO Jerome Park and not very far from the FOrdham
depot.
Mr.. g. Dlngce will sell by auction, tomorrow, on the
promises, at o'clock p. 70 lots at Rye Neck. 10 mn
utes' walk from the Mamaroneck depot on the NewHa-
ven Railroad. See advertisement.
AUCTION SALES OF NEW YORK REAL EsTATE
by JOSEPH INQUIRE.
and
lcl Lsurcus lot, each 25tlo0 100
Three bek houses, front r, no
Tot $3.50
1hreetiory bck shop aud @ No I Laun~ lot 25g5.. 2O
Four ay brick tenement houses 10 front mecstorY frame
u Nos J.nlIl Iaureus,