The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-05-08

AT no time since 1887 has there been so
great and sharp decline in real estate
values as has been witnessed in this city
during the last two years. The period Of
fictitious prosperity which marked the
close of the war and the years Immediately
following, up TO about 1872 gave rise to
swarm Of real estate spectators, who
bought and sold houses and lots on con-
stantly rising market. Land passed from
hand TO hand like cotton. Everybody
made money. Not q few realized largo
fortunes. With some thousands of dollars
cash, man would purchase 100000 worth
Of property, leaving $4,000, often $4,000,
on mortgage. Real estate operations came
to be very much like stock speculations,
with this exception, that everybody ope-
rated for rise; no one sold or thought OF
selling houses and lots short.
Finally, in the fall OF 1873, came the grand
crash. Those who were carrying heavy
loads of encountered real estate, struggled
hard against declining values, but they
struggled in vain. Unable TO meet their
interest account. with constantly accumu-
lating taxes aud assessments pressing upon
them, their equity was coon absorbed by
shrinkage. TO be sure they held the fee,
but the fec was utterly worthless, in face
of the large mortgages against 1t. Out Of
this situation there was but one issue-a
foreclosure sale. One by one the bold ope-
rators of the past ten years were swept
away. Men who were worth hundreds OF
thousands Of dollars have been utterly
stripped by these foreclosures. The prop
erty has reverted to the mortgages, and
real values In choice uptown localities
have receded from forty TO fifty per cent.
We speak more especially of high priced
Central Park lots. The numerous sales OF
foreclosure during the last two years have
made IL almost impossible to sell at private
sale, for no owner able to hold would sell
at ruling rates. The present condition Of
the real estate market Is anomalous and
exceptional. There is plenty OF money
seeking investment, and those shrewd buy
ers who have gcie into the business Of
buying at foreclosure sales, have reaped
| rich harvest during the last eighteen
months. While most of the speculative
| builders, those who paid exorbtant prices
for lots. provided the seller would furnish
building loan, have gone under aud
| hiSNIDtAltNt ~ new NiusS dlC Nb 'AlthFlN
coming to the surface. They buy Tor ca h.
| pay enough ready money to secure the
land, and put up the houses with cash All I
credit. But these builders are only TO be
tempted by great Inducements in the way
| of cheap lots. A notable Instance OF what
| we advance occurred Mt recent sale Of
eight full lots on Madison avenue, form
| ing the block front between Fifty-fifth aud
Fifty-syth streets for an aggregate of Sl0G,
| zoo. II was worth. and would readily have
brought, over double the amount Ave years
ago. IL was bought, as we understand, by
| well known builders for immediate i'm
proveInent.
Great rs wac the sacrifice OF these lots, il
Is at least the beginning OF healthy move
ment, and shows clearly that where lots
can be had III choice locations ut about
oue-half of the former prices, they
are taken. for immediate and actual use
| In point of fact, with extremely low rate.
for land, labor, and materials, houses can
now be put up and sold n remunera,ivC
prices even II they have TO compete with
foreclosure sales. II Is the part of wisdom
for those real estate holders who wish to
realize nve-siXths of the weak holders
are already foreclosed, sold out and swept
away-to come down and meet the mar
ket. Only in this manner can they stmu
late and encourage building. Give the
builder chance, and he will again appeal
in the market IL "A buyer.
With the exception OF a certain belt @
very choice improved real estate, lying 81,
between Seventeenth and Thlrty-fourti
streets and the Fourth and Sixth avenues
there has been marked decrease III rent
this year. Nowhere has il been create
than on Broadway below Fourteenth
street. From Canal street up, the disln.l
placards. "Tilis store TO Let" "'fhes
Lofts TO Let, This Bidding To Let" tel
q melancholy story. In fact, many Of thes
magnificent stores can be had to-day a
one quarter OF what they brought hv
years ago. This enormous decline has bee
severely felt by the wealthy, aud This wan
OF money among the rich has caused not
little distress among the poor. Most q
our wealthy families derive the great bu.
of their income from rents and IL ese llaY
OF late years wonderfully fallen Off.
A healthy real estate market, activ
building, aud remunerative rents, betoke
and accompany q general revival Of trade
one is lnseparable from the other. We d
not wish 10 be understood rs meaning tia
before No see better times prices of Ie,
; estate are to return TO what they were /
tue days of wild speculation and initiation
that we cannot expect. But If WE are {
judge of the future by the past, after :
great decline, and 20 long period {
> stagnation, il is afe TO assume that n
action is at hand in the direction Of greatC
activity in the real estate market.
The Bergen Tunnel Explosion.
Q The terrific explosion OF dynamite {