The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-07-02
REALTY REVIEWED
Summary of Six Months
Transactions.
PROPERTY DULL AT PRESENT
The Summer Months Are Quiet, but
Important Factors Give Promise
of a Prosperous Future.


There are many and various influences
extending through financial and CONNER
cial circles in San Francisco that have an
important bearing on the city's real estate.
While it is conceded that the real estate
market is unusually dull in these summer
months, the factors now affecting trade
and money give promise Of bright future
for the real estate men. The causes that
have through some years tended to render
stagnant the market are now disap-
rearing. In their place is coming what
appears to be a cheerful con dition. and that
is why real estate men are so hopeful.
Competitor in railroads, steamship lines,
ferries and streetcar accommodations are
bringing new life nto the city. The win
ter fair. which now seems to be an assured
success, will stir up the temporary lethargy
of business and moneyed men, while caus-
ing money to circulate among the masses
will induce immigration to the State and
possibly bring new enterprises to San
Francisco. The financial furry has already
become turning point in finances. for II
will result In placing money differently
diverting much into city lands. Deposltors
of small amounts in the savings banks
will look around for home sites, and rates
Of interest will probably change.
In the long run real estete Will be bene-
flied.
The total number Of city real estate
sales made in the first half of this year was
1850, of the total value of SIS, 177.S13. against
2lSO sales in the last half of 1892. OF the
value of ST.. 16O.692. and PTS sales. of the
total value of S9.35S. 263, in the first half of
1892, says Magee's circular. La COMPARE
son with the first half of 1892. this shows
an increase In the number and decrease
in the amount of sales made. THIS means
that there were more small sales made in
1898 than in the last half of 1892, when rich
men bought heavily in wholesale property,
and there were more large sales made, thus
swelling the amount of the half-year's
sales. This year the rich have stored their
millions in the savings banks, and the
middle classes have been buying. This is
especially true Of last month. when the
poor have been withdrawing their savings
and Investing them in lots or in homes.
Another reason for the large number OF
small sales is that many who bought
in 1889 and 1890 on the installment
plan are getting their deeds now. The
savings banks have been paying so high
rate of interest on deposits that the
|
banks do their fnanclering, rather than
invest in any enterprise involving risk
and worry. On account of the dull times
here and the railroad monopoly, people of
means awaited an issue before tying up
| their money in real estate. Besides this
want Of enterprise, property has been
held so stiff as to preclude prospective
buyers from investing. Income property
has brought good and in many cases high
prices during this year. There were
always plenty OF Savings-bank depositors
who would withdraw their money ii real
estate would pay them as good dividends:
but real estate has been driven so high by
speculation, each buyer making a turn and
selling, that the last buyer must lose: Tor
as a rule real estate is too high and it will
come down sooner or later.
The total number of mortgages made for
| the past six months was 223l OF the value
| of IS. S6S GOO, and the total number released
was 1872 Of the value of S5643.S61 AT the
beginning Of the year money was tending
| downward, but the demand for loans in
creased in March. Although Interest was
tending downward during April no reduc-
ton was made. Interior borrowers were
clamoring for reduction and in many.
! cases concessions were made to them. La
April Ala mortgages were recorded Of the
value of S1.453290 and $40 releases.
amounting to S717,O12. There were 400
mortgages Of the value of 81, 729. 9S5 re-
corded in May and III releases. of the
total value of S916,101. There was an
abundance of money in the banks, but the
| demand for it was light. In the month
! Just passed very little money was loaned
| Large sums were loaned out at 61s per
cent During the latter part Of the month
| hardly any money was loaned by the
| banks and 1t is safe to say very little will
be loaned for awhile. Any loans that are
made will be at per cent as the minimum.
Retail business property on streets from
| Suffer street south. from oHe to SIX blocks
from Market, has been in active demand.
Several good sales were recently made in
this di, trict, and at prices satisfactory TO
the sellers az we'll as the buyers. In the
wholesale district property has been stag
nant. Indeed, the demand is most prom-
nent by its absence, and prices have de-
| clined from Is to 20 per cent in two years.
! AS an instance of the shrinkage, a year
| ago $4,000 was offered for a water lot on
Davis street. and lately the best offer was
only s4o,0 900. The falling off is still greater
south of Market street
In general it may be said that residence
property is quiet. There has been no ad-
| vance in property near Golden Gate PARK
where the view cannot be obstructed, is
! the only residence property in the city
which is in demand. AS far as the market
is concerned, these sections have
| held their own. but prices are
still held high. Pacific Heights
is small section with a limited
number of really desirable building sites.
1t is a location for the rich. and with the
attractions Of pure air. good drainage,
fine view and accessibility, 1t will always
command good prices. Preside Heights
| has increased more in value within the
past two years than any other residence
portion of the city. Mission realty has
been holding its own in presence of quiet
market
The money which was drawn from the
savings banks win continue to swell the
| number of sales in small lots. Apart from
this inside real estate will continue to be
! in demand as it has been in the past six
| months. All outlying lands will remain
dull until prices are materially reduced.
Business will probably continue slack dur
ing the remaining summer months. But
in the end the slight bank run will benefit
real estate. 1t will have. tendency to
| make investors buy and build, manufac-
ture aud improve.
Forcing street work on prOperty-owners
is complained of as d hardship during these
dull times. Regarding this question Mr..
Magee says: ''Street improvements of all
kinds in this city are the most expensive
work the property-owner has to incuc.