Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-01-19
MONEY NOW .
OFFERED ON
REAL ESTATE
LOAN DEPARTMENTS RECEIVE
ORDERS
INDICATION OF CONFIDENCE IN
VALUES
Dealers Regard Return of Funds as
Important Contribution to Markets
strength-Inquiry for Realty
Improved

The most important and significant
phase of the real estate market during
the week was the offering of large sums
for real estate loans and reduced rates
of interest. Many real estate men look
ON this as the most important develop
ment for weeks, as it indicates reassured
confidence in realty values.
Two things that have stagnated the
realty market have been the meager
quantity of money to loan and the in
ability to find money to move the cash
market. In other words, according 70
those expert in the local situation, realty
business, investment and home site
retains its intrinsic value as fixed by II
in the growth of the past five years,
but the market has lacked the money
to move This was due to the general |
depression, the high rates of interest
demanded and the large amount of funds
tied up under the savings banks six
months notice rule. Now that money
is returning to activity and seeking an
outlet in the realty market dealers feel
that the conclusion is inevitable that the
market is maintaining its value without
a break.
OF course there is much money that |
is unavailable because of the rapactty |
Of interest demands but this is not hg-
ured in the realty calculations. the ng-
nring is done on the volume that has
returned to the ordinary lines of invest
ment and 1t reflects the Judgment OF men
who know what they are doing.
Increase in Inquiry
A perceptible increase in the inquiry |
for realty was noticeable during the
week. The market is alive to every IN
dication of promise and the inquiry has
been encouraging. Thdse was more ac-
tivitv in the home-seeking class than for
weeks and this was probably the result
Of settled conditions after January l. |
This does not refer to contract sites, but
10 cash and equity transactions several
of the leading firms report rather large
inquiry, remembering what 1t has been
for weeks for first class and medium
properties, and many sales have been
made.
There is. however, little use of ignoring |
the fact that many of the inqulrers are
bargain hunters. They have made up
their minds that values may be Gis-
counted but in this they are not entirely
successful, as the opportunity for acre.
age exchange has protected equity values
and has minimized bargain sales. There
have been many instances Where eolo
cash has driven better bargain for the
buyer, out these cases are not abundant
Exchange for Acreage
The exchange for city equities for
acreage has been the feature of the deal
ing for the week The values fixed by |
the apex of prosperity and demand IN
city realty have, of course been difficult !
to maintain when the money to operate |
the market has been withdrawn by the
financial stringency. But the minimum |
of value recently has not shown de-
probation that would alarm. On the
contrary it has been most encouraging, |
indica ting the abiding and obstinate faith |
of the owners in their holdings and a |
cool determination not to be stampeded
by what is deemed Il necessary hnanciai |
storm.
The past three months have been
fair test of realty values, those COM
petent TO Judge say. The striugency, |
coming when the realty market was at
its best might reasonably be expected
to force depreciation. But it has not.
The t-ansaction5 recorded, where or any
magnitude, have shown no depreciation,
Will where liquidation threw minor
properties on the market the sacrince
a. value was inconsiderable.
Demand for Rental Property
Another evidence of the stability Of
values is found in the inquiry for rental
properties of good grades. Applications
through one firm for furnished apart
ments and later for unfinished apart
ments in the larger houses brought the
answer that each was full and had
vociferous waiting list. Houses in the
preferred residence districts are scarce,
though there is an abundance of smaller
places in desirable districts. But there
is steady demand for all the better
grades and agents are taxed to NIL the
orders they are receiving.
Activity continues in the sales of acre
age property. The abundant means OF
transportation and the opportunity to Sc
cure a clear title for small outlay is
inviting to the small investor This class
of investment is desirable, as it is the
basis of husbandry and permanency and
assists in the expansion of the municipal
interests contributing slowly but surely
to city values. In this activity the city
market has shared largely, as the ex-
changes of city property and acreage
have sustained values of both. In other
words, it has been easier TO get the value
of security by acreage trading than by
a hurry-up sale on cash basis. The
volume of this trading has been large
and is a factor in preventing a deprecia-
tion.
No Investment shrinkags
There have been few transactions in
investment property during the week. but
several large deals are in progress and
are capable of early conclusion. Several
of these deals are of a character TO
show full faith in the values, for they
are predicated not on the realization of
present values, but advances. The pur-
chase of the three lots at Sixth and
Olive by the Pacific Mutual, while well
understood, is still an index to the values
fixed by cold judgment. Big companies
make their investments after full con-
sideration and with a sort of unerring
accuracy that is almost barometrical and
this transaction has been a lighthouse
in the realty storm. Some of the trans
actions pending are of nearly great
magnitude as the Pacific Mutual's pur-
chase and WILL when announced, tend
20 verify the belief in the markets COM
plete stability
--Ae-o
Sells for $4,000