The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-12-22
BRIGHT PROSPECT.
Conditions Point to an
Improvement
IN THE REALTY MARKET.
What May Be Expected From
Bank Changes.
IN THE REALTY MARKET.
INTEREST ON DEPOSITS REDUCED
Money Will Be Forced Out of Saw
ings Banks Into Real Estate In
nts-Changing Values.

Not a great deal is expected of The real
estate market this week, as the holidays
detract from investment affairs and con-
seQuently create a temporary dizziness 10
realty circles. The slow movement, how
ever, Of city property is only momentary,
for Immediately the holidays are past real
estate business will return to lis normal
volume. Some large transactions in the
past week have served 70 swell the total
figures of sales quite respectfully, and for
that reason there is little indication on the
surface of things to point 10 weak bust
ness.
As the first of the year approaches real
estate agents become more hopeful. for
there is little or no doubt that with the
opening of the new year a new start will
| be taken which ought TO be one OF prog
ress. Quite large number of prospective
buyers are waiting for their semi-annual
dividend, which they will receive from the
various banks on January ], before in
vesting. There are numbers enough to
make their dealings have q decided effect
on the market.
AS the year draws to a close the uni
yersal sentiment Is that San francisco has
passed through the worst Of the depres-
sion and that never again Will the same
chances for investment with such advan-
tages for the buyer be offered as have
been during the past year. And yet
owners of property should not let them
selves be carried away with the idea
that prices can be materially stiffened
under market. which. if not actually
rising, is full of indications of coming
prosperity Nor will it be wise to adhere
too closely to old standards of value,
which are now regarded by bankers and
real estate agents in the light OF dilated
estimates purely.
Within the past week the Hibernia
| Bank has reduced lis valuations on city
| property from 20 to % per cent below those
made two years ago. Several persons TO
whom the bank loaned money on mort
| gage on city property were surprised to
learn that in consequence of this redue-
| ton their OLD mortgages would not be con-
| tinued as before. Instead of renewing the
| loans the bank notified these borrowers
| That it would require some money as part
! payment OF the mortgages. This money
| was loaned some time ago on margin of
60 per cent, and to keep within that limit
the mortgages must be reduced In accord
aDce with the banks conservative policy.
The Savings Union has reduced its inter-
est on deposits to 4 per cent for "oIdi-
nary" and $40 for term" deposits. This
is cut of about u per cent. 1t is ex-
pected that the other savings banks will
1
they usually do through some mutual I'M
derstanding. The result OF this action
will be to force money out of savings
| banks, and as the next field for Investment
| of these deposits is real estate there is
great hope for a lively market next spring.
AT the new rate CT interest deposits can
not be said to be any longer in compet-
| ton with real-estae investments. Here
| tofore real estate in competition with
| savings bank interest had very little the
better of the situation.
With taxes, insurance. water bills, cost
of repairing. etc.. on real properly. but
| small margin WAS left over and above the
profit of bank interest. Real estate had to
| pay per cent net TO compete with former
interest paid by savings banks. And then
an incessant complaint could be heard
against the conditions that made such a
state of affairs possible. Far-seeng agents
! said that interest on deposits would have
to come Gown before material improve
ment in their business could take place.
| 1t seems the desired time is at hand.
The savings banks are considering the
reduction of interest on loans to 6h and,
probably, to per cent. These are figures
which will allow borrowers to live, and
they also ought to stimulate the realty
market through tempting many people to
! borrow on mortgages.
! Shainwald, Buck bee & Co. report sales
as follows: Lot on De Haro street, be-
! tween Nevada and Sierra streets, 25xlOO.
to P. Sheehan, for $3.50. lot on the west
| line of Eighth avenue, between California
and Clement streets, 25x12O. to George
Thomas, for $1,000. Lot 5Ox1OO, in block g.
Flint tract, $4,000. Southwest corner of
Suffer and Taylor streets. with a new
building containing drug store and a
| lodRing-house. To Robert S. Knight, for
$500 Residence on the north line of
| Cal fOrnla street, between Jones ana
Leaven worth, 50x137:6. to H. T. Scott,
| $1,000. 2S5 acres Of vineyard land at
Asst, near Cloyerdale, to w. G. Witter, for
$4,000.
6. Fl. Umbsen 81 Co. will hold three auc-
ton sales within the next two months. On
the Goth inst two pieces of property be-
longing to the estate of Henry M. Morton
will be offered by one OF the courts. One
of these is lot on Turk street % :2xSO:6
near Larkin, aud the other is 2lS Prospect
rlace, between California and Pine sire Is.
consisting of two flats and lot 28xS7 :6
Another auction will be held about the
middle OF January. but neither the date
Nor catalogue is yet ready. The most
I'm pOrtant sale of all will be the auction on
January % of two properties on Market
street. Only once in years is such prop
erty offered in San Francisco. The south
west corner of Third and Market streets,
70 feet on Third and Is on Market, with a
substantial building, and the corner of
Stockton. Ellis and Market streets, having
clude the offerings for this auction. The
month and the Stockton-street corner,
with It's nine stores and several offices up
stairs, brings in a monthly rental OIL 5000.