Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-02-23
MARKET FOR
REALTY is
IMPROVING
INQUIRY is REPORTED TO BE
MORE ACTIVE
HoMEsEEkERs ARE THE PRlNcI-
PAL BUYERS
Speculative Element Reduced and
Transactions Represent True, SUBJ
stantiaI VaIues-No Sacrl-
fees Are to Be Found

With a substantial demand for non
speculative properties the real estate
market seems to have found level
that is not likely to be disturbed soon.
This is the opinion of dealers who are
watching the situation closely and who
have diverse interests. That the spec
ulatiye element has been reduced to
almost a minimum is taken as good
way in when to test the substantially
of Los Angeles real estate. The in
curry is reported improved during the
past week.
The money stringency came after
years of abnormal activity and long
after it was expected the realty market
would show reversal of form. Prob
ably nothing more effective could have
been devised to test the real stability
of the local market than the earthquake
and the financial depression. That test
has been met without loss in intrinsic
value and this is the highest testimo-
NAL that could be needed Tor the pru-
dent realty investor.
There has been no sacrifice in Los
Angeles real estate. The values have
Leen maintained because there was
only one element in the situation that
INJURIES the market and that was th9
rightness of money. The market Is
here, substantial, full of future increase
and value and not suffering because of
ranicky sacrifices. The speculative
character is not entirely absent, for
wise men who have lived through more
serious financial disturbances regard
It as certain that in a year real es-
tate will again be in the ascendancy
with increasing values and increased
demand.
The Buying Glasses
The past week has been one of dem
onstration to the dealers. The seek
ers after realty have been of two
classes-the homeseeker and the bar
gain hunter. The homeseeker has been
numerous and his demand has beeh
Tor acreage in small tracts and foc
city property in the suburban districts.
1he bargain hunter has been unsatis-
fed The instances where property is
Icing sacrificed are so few that the
one who thinks the bargain counter
will be loaded has really scored loss.
The owner who wanted to preserve his
equity without sacrifice has been able
to do so through the medium of trades
Cor cheaper property. usually suburban
acreage. This has been satisfying to
both parties.
ABDUL July many eEtIAS tApCRb ~
see the market become unusually act
i've, for by that time depositors in the
savings banks will receive their money.
on which notice has been made, and
this money will find it's way into the
realty market either by direct pur-
chase or by loans for realty invest
ment. There is no way to calculate
the amount that will be available for
use then, but it viii be very large, and
1t is also true that most of it has been
saved for just such purposes. When
this available money becomes active
the rates of interest will, in a large
measure, determine how it will be en-
ployed If the rates continue high,
doubtless much of it will be invested
in realty mortgages, and If not, direct
purchase will be the plan.
Outside Capital
Another indication that the market
il proving attractive to financial cir
cles is the purposes of several large
institutions, who have abundant faith
IN the city, to make large investments
in real estate securities. This is the
Outside money" and is based solely
on the confidence in Los Angeles real
estate. Some of this "outside money"
has already found investment and the
dlldptC dlliOhhl 10 OtIOlillilS BItdltl.
Industrial property has a high credit
in these transactions, which is an adj
ditional Endorsement.
The market during the week has
shown no change except an increase
over any week of the year in the
quantity of business. The tourist pur-
chases have been large and the resto-
ration of more nearly normal business
conditions has stimulated home buy
ing. Until the deposits of the savings
hanks are released the elements named
are deemed sufficient to support the
market. When the deposits are re-
leased a season of activity is regarded
as sure.