The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-09-05

tho figures Of two years ago Indeed some have Como
on more than that but taking the city and the suburbs
as whole the decline is about thirty three ana mira
per cent The great trouble is that property IN the out
lying towns like those along the line OF the delunct bos
ton and Montreal Railway, and on Long Island has been
run up and held at fabulous prices and now, owing 70
the stringency in the money market,
IT rs TuMBLING TO ITS NATURAL LEVEL
In point OF value. Spectators who have bought
large tracts and laid out villages find that they cannot
get their figures and, being pushed themselves for
money, they forced To sell point nearer actual
values. People with difficulty meet their interest
and taxes owing 10 the tghtness of the money market
and those spectators who have mado calculations on
large prices, finding money becoming tighter and tight
err, will be compelled TO sell First class city property,
however, will always command far price, and will
not be sacrificed 10 any great extent There always
of capital In the market ready TO buy choice city
lots improved or unimprovod, at fair value, and hold
them for rise
Another dealer in real estate whose
actions very large in brisk seasons reports that the
stagnaton OF the market Is most marked and few
prices have about found their level, and
THE sHRINKAGE FROM TWO YEARS AGO is FULLY THIRTY
PER CENT
"High taxes have much to do with the market said
he land last week paid in taxes 81 500 piece
OF property which two years ago paid but $3.50 on.
We have demand for some property from persons who
have money and afford 10 carry II for rise. Tho
fluctuations are not great persons who purchase
cheap continue to buy and wait for the turn of the
tide You know, no second now OF the tide
is as low the first We at the lowest tide in
hve to thirty per cent below those of 1929 We
about down to actual values. Some property, such
still high and is likely to remain and
NOT FOLLOW THE DOWNWARD TENDENCY
OF o.ncr parcels Owners hold IL rather than SELL and
ldoh believe you could buy four lots in the market
stores on Broadway held at $40 900 rental empty
the tenants having been driven to side streets; but
when rents fall AZ they must fifty per cent tenants
will return to Broadway, which after all is
the centre of mercantile business. Comptroller
Green's policy has been destructive to improve
ments that uptown property, along the boulevards and
about the Park that has been kept for years fancy
prices, can scarcely find purchaser and it is down
Val I
take a very
HOPEFUL vIEw OF THE MARKET
for the future Our spectators, who have purchased
and held for great RISE owing TO the prospective city
improvements will be singed no doubt little but the
market generally will not likely experience any panic
Choice property will always command fair value; and
matter how tight the money market, somebody
always is ready to take 1t at fair valuation
~ should say there has been shrinkage OF fully
thirty per cent within two years, said veteran
operator yesterday 1--WE have not had for years such
a holding back, fear to venture into transactions
People cautious; this Is good sign hence take
hopeful view Of the future. Owners want their old
fancy prices and If they can meet the interest they
hold out and buyers will not venture unless they
their way clear TO a bargain
both BUYER AND SELLER WAIT
for a convenient season, which look for when
real estate will change hands at its fair valuation We
have been going too fast, have up to fancy
amplcs of this imitation OF the market IN ycara
past For instance sold in 1S45 property about Ninth
Tooth street at from 50 to SIS per lot which,
as part OF the Clcndennng estate ten before
held at 81 900 per lot Now it is worth probably $4,000
per lot Before the great fire Of December 16 1885 and
Immediately after, real estate had been up to fab
ulous prices and spectators gambled in 1t extensively
The fire came and then the panic of 1887 The banks
suspended payment and real estate tumbled
Between the fire and the panic real estate
was very active, and my sales in the month
nearly all of which, have reason to believe were legti
mate transactions The rc destroyed twenty acres OF
buildings in the neighborhood OF Beaver and Pearl
streets. Before the fire the estate valued with the
buildings at $500 000 After the fire the ground alone
realized 100000 AS above said, about this time real
estate was the great speculative article.
MEN RUSHED WILDLY VENTURES,
bued the market and put prices from fifty to sixty per
cent above their real values The banks stopped how
ever, the crash came on the 9th Of May, 1887 and
fancy prices had an end We have had just such ex-
peenccs nearly every ten years since 1917 An imitation
of real estate to artificial value, financial crisis
general decline OF real estate, until it reached It's
normal value, have marked every ten years 1t
1851 in 1861 and should not DO surprised If have
1t again next year and the year after. AS have Al
ready said, we move too fast.
WE WILL HAVE TO PAUSE CATCH UP
prices can't be always up; there is great deal OF rot
tenness in real estate transactions in banking nsti
tutions and for years to come will realize the
prices owners have put upon speculative property.
The men who have been spending money in the hope
Of local improvements enhancing the value of their
property Will lose heavily This will be tho case espe-
cally the line OF the Park and the boulevards Wa
have got To pay the penalty Of extravaganza and
come down to the common sense view OF the matter
"The foreclosure sales indications OF the mar
ket They are controlled by rings and in very few
stances do they bring anything for the morgagcor The
mortgage buys it in, and
THE MAN VINO BORROWED
on it loses his investment, and frequently judg.
the amount loaned and that realized by the sale These
sales do not involve question of value but of title
They merely transfers OF title back to the original
owner This is all the significance attached TO these
sales unless that they show the tghness of the money
market and the inability OF holders meet the OBJ
legations they have assumed
1--WE coming down rapidly, said we'll known
real estate operator, Ito actual values, and
cautious order of things The majority of capitalists
think that prices will rule even lower,
ana and IL Us true that you will find
willing to listen to the prices asked So far ex
pcrencc goes there independent property
IN the market In fact they hold for higher prices
WILLING TO coycEDE A DECLINE,
but holders who able to carry parcels notswna
TO sell $40 900 worth for $40 900 or $50, Ooo think
they do that there better times ahead that capital
will fight shy of fancy property in the city and suburbs
and watch It's opportunity invest city property
that is not affected much by the sudden rise
and fall of speculative parcels. estimate
that the shrinkage in real estate values
ruling prices of ls723 The foreclosure sales should
not be taken into consideration in asccrainlng the
of notice
MERE CHANGE OF TITLE,
q replacement OF the property in the hands of the
original owner Prices for the last three four years
have been entirely fancy, inflated by nflaonists to
point where the strain is felt, and the indications
that real estate will find its level and fluctuations In
future be less marked Here, example, rs a house
that could not DO purchased for $4,000 two OF
three years ago just sold for 100000, and
here again is held two years ago
at 100000 sold for $50 900 cash These
few OF many that could be cited to show that the
shrnkagc is great Owners OF first class property
hold for the old prices but rarely refuse fair Offer
gentleman and lady recently examined very line
house. in good part OF the CITY, and offered 1925, 000
for II, which accepted although could have been
purchased for SS5 600 500 900 had the offer
made Property on Broadway, below the Post Oiicc,
has been held for three years for advance, and
Gently sold for the original price demanded. There
have been within three months several such salea
AMONG THE MEN
tho report is that solid property owners arc not az
fectcd by the fluctuations and await their opportunity
They generally take such rents they may have Of
fcred If they suit them and taxes, water rents
insurance, repairs and interest If not they hold them
for rise knowing that later their time will
come. My survey of the real estate market satisfies
me that prices are likely to rule lower for time TO
come 10 approach nearer actual values than they have
for years. /, therefore, look for an
EARLY REVIVAL OF THE MARKET
and return TO fair prices all properties OF real
values whc fancy parcels kept up to bull the mar