The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-11-20
REAL ESTATE NEWS.

The effect OF conditions In the money
| market on tho real estate business OF the city
has been strikingly illustrated during the past
two months. Ordinarily the month OF Octo-
Der has ushered In the active season in realty.
but this year October was as barren OF results
az a summer month. and the present month.
thus far at least, has been equally unsatisfac-
tory. p.
The explanation OF this state OF Affairs. In
the opinion OF many q the most successful
real estate brokers. lies in the high rates OF
interest which money has commanded for six
weeks past The extensive funds held by
trust ompanies. estates and private individ-
uals. which have heretofore been available for
realty Investment and improvement opera
tions. at rates OF interest ranging between
and per cent. are now being diverted TO
other enterprises. notably so 10 the stock mar
ket, where they have claimed rates as high as
20 and even 30 per cent, and where at present
they yield from . TO 9 per cent.
Under ordinary conditions the money now
loaned on collateral especially by estates and
private individuals. would seek In preference
Manhattan realty as attended with the mini
mum risk under honest appraisals, but with
the rates obtaining for the past six weeks the
most conservativ<are willing to run whatever
risks there may be attaching to the loans.
IN consequence tHc rNdNy bui-
fered. Prospective buyers Of property who In
tended to improve their purchases have been
confronted with an increase In rates Of inter-
est In the loans they had to have to follow out
their plans and. believing that the market de-
mand fer money was only temporary and that
as soon as the demand weakened they could
secure their loans at the old figures. they have
POSTPONED their contcm plated operations I'M
til such time rs the belief becomes the fact.
An actual instance Of the present difficulty OF
obtaining q loan on realty at per cent.
even under the most favorable crcum stances.
was cited By prominent broker last week. Il
wished to obtain loan OF $50 900" he said.
''on property that was appraised a. $50 900.
aud which must have been worth at the very
least $4,000. The rate desired was per
cent. I went to trust com pany from which had
often obtained more liberal loans at the same
rate. but the Secretary Of the company refused
to make the loan because money was bringing
go much more remunerative rates in Wall
Street. Then / tried to obtain the amount
from estate fund. but met with the same
reception and the same explanation. l was ac-
tually unable to place that loan. email II
was. until Thursday when the rates weakened
on account OF Secretary Cages an
nouncement Then had no difficulty at all.
This experience OF mine Isl by no means the
exception. II has been duplicated a thousand
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