Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-19

the sort on the market or so little as to be
practically the same thing. 1t goes without
saying that the attempt will be MADE 10
supply this deficiency, and the supply or
such houses will be added to during the
coming year.
1t is also believed from what is already
talked about that the number OF small
houses will be increased. The demand for
that sort of home is of course larger than
for any other. and when 1t comes TO rented
property 1t is always true in this market
that there are never enough houses that
rent for less than twenty-five dollars
month to meet the demand. In all this
process of the growth and development on
the part of the city it is noticed that the
market for unmproved property mas
shrunken to quite small dimensions and
that naturally with this has come falling
away in prices.
A Change in the Custom.
This is especially true of single lots and
small building sites, unless the location
happens to be of such a character as to
justify the building of a large and expen-
sive house Land Of this latter sort has
not deprecated, although the market for it
is naturally confined to those who have the
means to build elaborate residences
The disappearance of the individual bulld-
err and the substitution of what Is known
as the speculative builder is attrlDuteu
mainly to the rise in the cost OF building
materials. but whatever the cause, the
effect on the market for land is undouoted.
1t is readily understood why there is no
sale for single lots in the ordinary resi-
dence locality as the belief is that such
holdings cannot be improved to advantage.
The modern method of building houses FOR
sale runs to quantity and so unless there
is room for a row of houses the builder is
not apt to consider ground available for his
purposes.
The search for cheap ground is one of
the features of the market and when 1t
il found it is improved with a class OF
house which the builder looks upon as suit
able for the locality. There is always
great dread of getting a house too good for
the neighborhood, as the phrase goes,
which means merely that the house must
not cost any more than will make it posi-
BILE to put it on the market at hSure
that people who are willing to live in the
neighborhood are able to pay.
SO there are two-story houses and three
story houses built and the number OF the
rooms range all the way from five or six 10
fifteen or twenty, entirely depending on the
locality. There are houses in which are
found a bath room on every floor and all
the interior adornments and devices which
are to be had in the most expensive class OF
houses In fact, that latter characteristic
applies to a surprising extent to q large
number of houses that are offered for SALE
so that the wonder is that it is possible to
give so much for so little, as it seems when
the asking price is compared with what Is
offered
As to Business Property.
There is another thing about the market
that is of consequence at this time, although
it Is not specially new, and that is the de-
mand for business property both as an in
vestment and for speculative purposes. For
the past six months brokers have been re-
porting inquiry for this class of property.
and also their inability to supply the de-
mand owing to the fact that owners as
rule were unwilling to part with their prop
artrr hat ned a
There is no change either in the demand
or in the scarcity of the supply The aver
age broker will tell you today that If he
could get hold of business property at
fair price he would have no difficulty about
finding customers. When the question Is
asked what is meant by fair price the
usual answer is that property used Tor ousi-
ness purposes and well located. and paying
a net income of > per cent could be sold on
that basis.
Basis of Valuation.
1t is also said that when there is an APP
parent future for property of that sort and
a chance of appreciation in a reasonable
time the basis of its valuation changes,
and people are willing to buy it with that
in view. But where the asking price does
not show a net return of at least per cent
on the present earning power of the prop
erty then it Is said unless other considera-
lions enter in that buyers are unwilling to
pay what is asked. 1t must be said that
those who own such realty are not specially
anxious to sell. but from the standpoint Of
the broker a little less stiffness in price on
the part of the owners of property would be
desirable as far increasing the volume Of
business is concerned.
Ii is regarded as a good indication of the
condition of the market when there are
possible customers in sight. and the only
reason for lack of business is the ina bility
to bring about agreement between the
owners of property and of prospective buy
ers in regard to what ought to be paid At
any rate, this state Of affairs shows that
people who have money are willing to buy,
and that the owners are able to refuse good