The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-09-05
The Number and the Meaning of
Foreclosure Sales.
A COMPARISON WITH 1897
Is There a "Noiselese Panic"
in Real Estate?
THE SHRINKAGE SINCE 1879.
Confidence of Legitimate Holders
in Their Property.

The real estate market at the present time is very
interesting study. For the past three four years.
and until quite recently, fancy prices have been do
mandcd and capitalists who desired TO invest only In
paying property with the hope OF seeing rise in tho
| future held or believing that tho market inflated
and that the time when real estate should
settle back to old prices, such prevailed before spccu
lators ran II up to fictitious values.
AS a consequence legitimate sacs became fewer, and
mainly due the fact that holders owing high
OF taxes and insurance. forced to throw parcels
the market large number OF the sales Of the past
two years have boon under foreclosure proceedings
prices that indication OF the market and such
that no property who afford TO hold his par
cells would for moment entertain. These
FORECLOSURE SALES,
It is safe TO say, forced ones merely transfer
OF titles from the buyer back TO the original
his assignee or in other words full forfeiture of the
property Many legitimate sales have been made of
large parcels to close estates and private sales
have been recently made The numerous foreclosure
sales have had the effect 10 reard offerings and dis
courage inquiry for real estate and the majority of
sales at the Exchange Sacsrooms for two years have
been foreclosures Besides all this there ghtness
the money market which fact assists force prices
down from the high figures put upon parcels by spccu
ators, who, in expectation of great local improve
INVESTMENTS.
At no period since 1866 have there been so MANY
foreclosure sales. In tho following year Qs67 began
the heavy investments and speculation uptown prop
erty in expectation Of the effect OF the Central Park
and Boulevard improvements and for five years or
until 1872, prices up up, up far beyond actual
values The great improvements shown on paper never
came and n result reaction took place and fore
closures became the order of the day Prices began
falling away TO the old standard until there are
no offerings outside OF these forced ones.
1t is quite certain that who is able to hold his
property shows any disposition to throw it upon the
market at current prices Thus with the gradual
moval from the market of weak holders through
foreclosure proceedings and the return of
large a volume of real estate to the original
owners, we have a condition OF the market The
indications all point to revival of activity and re-
turn to soundcr kind OF business in the future Tho
weak spectators being driven from the market by
these foreclosures and the real estate most likely
become the subject of future activity has fallen the
custody OF capitalists banks insurance companies and
other parties who, being abundanty able carry it,
are indifferent the frequent fluctuations of values
Nearly all the real
CLASS IMPROVED PROPERTY TOWN
is held by gentlemen OF and by moneyed insti-
tutions and rarely thrown upon the market except
under executors sale when savings banks and
like large holders of mortgages forced realize
thereon As a consequence, substantial houses in fine
localities show a fair seadincss in values The is
true TO extent of the other extreme, OF tcne-
ment property and houses owned by the thrifty
foreign element notably the Germans. This class of
investors buy property for investment and rental and
not to speculate upon, and, having paid for II,
they generally hold it, and satisfied to draw the
rents. There is Immediate danger of monetary
panic that will force holders of mortgages to call them
in, and hence there is to suppose that i'm
proved property will when business revivcs be subject
to any serious sudden fluctuations Speculation is
likely be confined to wcstchester county and unm-
proved property the upper part of the city and on
the outskirts of Brooklyn where
RAPID TRANSIT
is likely to enhance the values.
Then the old experts Of the real estate market expect
to fancy prices rule for season; but the general
opinion seems TO prevail that tho market has touched
point whore the fluctuations up or down will be but
trining
The removal OF the Post Office TO tho new structure is
likely TO ok the price OF downtown property about
for the decade good price, that will be sub
ject to frequent fluctuations, and in consequence
and stores about II in good demand slight adj.
the ruling OF the past two years The
movement Of real estate this city has always or
less been subject 10 the capr Of tho money market
1851.
Tho great FIRE of 1895 destroyed 600 stores and
mercantile interests crippled in consequence
Pronting upon their mi fortunes spectators rushed
in, up real TO fabulous prices and these
maintained until the banks suspended, in 1881 when
the big real estate bonanza melted away and the In
natcd property fell OF 10 its natural level So II
tho later financial crises OF 1s47 and 1857 Specula.
tors who had 'buled" the market felt tho pressure
and, being unable to carry the large parcels forced It
upon the market and sod at sacrifice The last nna
ton OF prices general began 1868 with the imitation
OF the currency, but not until 1867 that real
estate took it, rise Real the last TO feel the
effect OF Initiation and go up and II is the last
come down After tho war closed everything elso began
10 fall OF In value.
THE COLD PANIC oV 1860
was tho elimination OF imitation IL was tho prickng
Of the imitation bubble But not until 1872 and 1873 did
real conform new order things begin
TO drop away the old values The public should,
however not forget that the prices realized at fore
closure sales OF mortgages likely 10 be below tho
market value not 10 the same extent as the fancy OF
inflated prices above the real market, and where
this fact realized by shrcwd observers Of tho
Of values large parcels passing into the hands Of
corporations and individuals who can carry thcm with
the result Of tending TO Fix values sound basis
While as has already been stated,
sALKs FORECLOSURES
indication OF the real state Of the market,
their indirect effect Is 10 make capitalists cautious in
investing IN property Of this character all authorities
agree that tho instituted this year largely in
of previous years perhaps thirty per cent
Many Of these suits are instituted TO compel dcauitcrs
to pay the interest merely and are never forced to the
hammer owing to the interest being unpaid Official re-
turns show that the instituted In New York and
Brooklyn during the past FIVE weeks follows
NeC Tork. BROOKLYN
Last week IN July. 10 40
First week In August. .......... - SO
Second week IN August. .............. 80 40
Third week in August. ............... o. 80
/ Fourth week IN August .............. 81 81
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