The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-12-04
REALTY OUTLOOK.
Demand for City Property
Remains Dull.
New Industrial Schemes Afford the
Best Hope of Improvement. :
Bank Interest.

From advance proof sheets of the Real Estate
Circular, published by Thomas Magee, are
made the following extracts:
The real estate market runs all one way.
There is no demand for any kind OF large busi-
| ness investment bur central, retail business
property nor of Market street, or for prop
erty which. II not now within that favored cir
Gle, is close TO it and will nlanifesily be within
| it in few years. For wholesale business and
manufacturing property, especially the latter.
there is in the first case little and in the latter
case no demand whatever. The price of the
first has been greatly reduced, while the latter
has fallen so much that no one can now say
| just what it really is worth. The demand for
| large residences ana los, or for vacant land
suitable for large residences, is small. Some
very fine bargains in the first-described class
of property can now be had. Houses aud lots
westward. in good localities. worth $4,000 10
$4,000, sell tolerably well, as do also lots SINH
larry situated, worth $1,000 TO $1,000. these lat-
ter prices being Tor lois which three 10 four
years ago sold for $4,000 o $4,000.
In other words city real estate is dull, decided
ly dul, ana prices everywhere but IN very small
choice retail circle decidedly dropping: ana
so II is likely to continue until new Industrial
schemes for The CITY or new plans for State d.
velopment are devised. Those who have de-
clined 10 aid the San Joaquin Valley railroad
project should work for The Nicaragua canal
by sending a representative body OF men to
Washington to urge Congress to pass the bill.
the construction OF that canal would revOlu-
tloniZe The marine commerce OF the world, and
aid San Francisco as nothing else would. The
total number of sales made IN November was
29O of the total value of $966,51S, against 500
sales in November, 1890, when real esta te was
lively, of the value then of S2,317,S5o.
II is rumored, and we believe truly, that the
Hbernia Savings Bank is considering The sub
ject OF reducing the rate of interest 10 612 per
cent per anUum. out of which rate it would OF
course pay the mortgage tax. The latter ranges
from 81 80 10 81 90. The net rate. therefore,
10 the borrower would be only 4.90 to 5 per
cent. This reduction, borrowers think, should
/ hnnp mo 10 no. ana ana ~
savings banks Joined a New York bank combi-
nation in bidding on the late $50, 000.0 600 issue
of United States bonds. but they did not get
any OF them, The combinations offer of
JIG $500 having been overbid, the sale haV-
ing been mad at 117.077, which is only equal
TO in crest AT q 71a for the whole term.
The savings banES here have been looking
for investments In bonds, 10 replace those sold
In the run on them OF last year. In panic iG
is much more easy 10 realize on bonds than On
real estate loans. Money is in abundant supply
at ii OF the savings and commercial banks.
The latter have very much more money on
hand than they can lend, the city's loss OF in
terror and coast trade rendering it unnecessary
for merchants TO borrow. Under these general
circumstances, and In times which yer were
harder here, interest rates undoubtedly should
De reduced. Inree hundred and seventeen
mortgages were recorded last month, OF the
value OF S9l0,917, and 227 releases, Of the
total value OF $751;
An exhibit lately made by Chicago paper
shows that the sales OF a late month Tell from
S24, o25, 4A9 in 1890 TO SS,993.86l IN 1884
Inc falr booming ana lnnauon Is now Delng
settled by the deepest depression IN the volume
OF sales aud the prices now paid
In conversation with TWO gentlemen who
have loaned some money on Chicago real estate
security, the writer learned why capital is not
being invested in downtown business property
there The more active one OF the TWO said
that mo better security could be found for
large loans than central business property at
Chicago, but the rate or interest Is not high
enough. Outside of the center more favorable
terms can be secured for money loaned on
mortgage. Upon the other hand" said he,
.'t no longer pays 10 buy city property, because
nine-tenths of it doesn't pay four and half per
cent net. This is better understood after trial
of such investments. 1t costs too much TO pay
insurance, repairs. taxes, spr cial assessments,
agents commits IONS and lawyers fees. Be-
sides no house can be rented up to the full
limit; some Of the rent is lost by having Dad
tenants, and some by having no tenants'