Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-22
REAL ESTATE GOSSIP
Change Observed in Status of
the Home Buyer.
FEATURES OF THE MARKET
Purchasers Said to Prefer the Ready
Built Houses.
PRICES FOR BUSINESS SITES
Phases of the Local Situation-In-
crease of Population-Higher
Prices Prevail.

1t is regarded as interesting exactly
why the practice of buying rather than
renting a home is more general in this
city than it was several years ago. There
is, of course, the obvious difficulty about
such an inquiry, and that is the informa-
tiOn desired is almost entirely of per-
sonal character and not a matter at all
of public record. The deed transferring
the property is made public and some
times the consideration given is men,
toned, but not always and not neces-
earily, and that is about all the Informal
ton in regard TO home buying available
for the statistician except the deed of
trust.
The number of such transactions can be
notes and compared with similar sales
during the preceding twelve months and
also for previous years, and in this way it
can be determined whether or not there
has been any change in the aggregate.
But such statistics furnish only the num-
Der of house buyers. and does not dis
unguish between those who buy in order
to secure place to live In and those who
buy for investment purposes. There is no
light thrown on the question TO whether
or not the conditions are more favOra BILE
Cor home buying than formerly was the
case. and it is also impossible. from the
record of such transactions, To determine
the motive.
Increase in Population.
There is no doubt as TO the increase In
the volume of such buying. and the con-
clusion reached by some competent OBJ
servers who have given this phase of the
market considerable attention Is that this
fact cannot entirely be explained by the
growth of the population. OF course, the
larger number OF people at this center
naturally has an influence upon the ex-
tent or the buying, so that if there was
nothing else TO affect the market the fact
that there are more people living in this
city today than was the case ten or five
years ago unquestionably would do so.
For the past five or six years the BUSH
ness OF selling houses TO persons vino
were III search of homes has grown more
than any other one feature of the realty
market, so that today there are MANY
more houses sold than building sites and
the total OF such trading constitutes the
Dulk OF the business. In that period the
Change has been more noticeable from the
practice OF individual house building to
eradicate that OF erecting houses on a
Ia:sc scale Nowadays very few home
seekers build their own homes The vast
majority of them buy houses that have
been put up for the purpose OF sale, In a
quiet way what practically amounts to a
revolution has been going on in the mar
ket mere, and instead of building lots Ia
ing the main feature OF the market
houses have taken that place.
Effect on Land Values.
The value of building lots of a width
suf1cient only for the erection OF one
house has suffered by this change. as
the demand for them has fallen off. The
scaling down in land values is attributed
not alone to the change above referred
TO- but also 10 the bringing within the
area OF the spread OF the population a
large section OF outlying land which the
trolley roads have made accessible TO the
business center
The man who builds TO sell is constant
~ in search of land which he can buy
at such figure as 10 allow him ii pra.it
on the total cost of house when built
tie Is not calculating on the appreciation
lii the value of the land as To large
extent speculative values in resident sec
lions do not exist any more. although of
course exceptions may be noted here and
there. and especially I'm the newer por-
lions OF the suburbs.
Profit of Builders.
The extent of the profit on each house
when number is built also represents a
change in the conditions here. IL Is claim
ed by men who embark largely in 4o,,ss
building that if they are able 10 average
a profit OF 500 on each house in a yroun
that they are well satisfied with the
financial results OF the enterprise OF
course. il there is any delay in selling.
II for any reason the market should prove
10 be slower than was calculated t!.en
even that margin OF profit is eaten into
by the interest and other charges.
This closeness of the selling price 10 the
cost is a feature OF the building market
which is comparatively recent. and one
that was unknown to the oldtime build
ers. The latter had to nave large profit
from one house for the reason that they
did not undertake great number in one
season. Now. however. with methods in
building radically changed. il is possible
to erect great number OF houses i'm one
season. and IL the market proves 10 be
al all active the builder disposes Of them