The sun., 1913-12-28
1918 AUCTION MARKET.
Branch Of Realty.
NJ BRYAN l., kENNELLN,

NJ BRYAN l.. kENNELLN.
Reactionary conditions have prevailed
in the real estate auction market dur
ing the past year as we'll as in the
general market. While surface trans
actions have not seemed to be encour-
aging. nevertheless those who could
see and understand the real trend Of
events have been pleased with the sit
uation. There has been practically n
double market aspect. The public has
witnessed a dull. desultory movement
in harmony with the unsatisfactory
progress Of events in all of the main
fields Of investment. But the UNDER
lying development has been directly
along the channels of betterment. 1t
has pointed to speedy resumption Of
metropolitan activities upon a normal
scale.
Above all. the auction market has
come forward with decisive strength to
the support Of the general market. II
has demonstrated Its power and i'm
portance more emphatically than ever
before. While the general market has
been inert and brokers could not sell
properties under private contract. the
ceptive field for satisfactory liquida-
ton. Operators. estates and referees
in court proceedings have been able 70
turn q great volume OF property into
ready cash.
In this respect the auction branch OF
the real estate market has been Of
marked benefit to realty in general by
demonstrating that this means Of in
vestment has at last attained "A degree
Of quick negotiability almost equal to
that OF the best stocks and bonds. In
deed. II has proven realty to he far
more readily convertible into cash than
the lower grades and more inactive Of
corporation securities. which have
practically found no market at all dur
ing most Of the year. and II the owner
happened to force them upon buyers
the result was a sacrifice little better
than confiscation.
The importance of this new phase
Of realty Is demonstrated by the vol
ume OF transactions at auction during
the year. Manhattan and Bronx prop
critics sold under the hammer made a
total close to around $50, 900. This
in spite of the dulness in all other
fields Of investment. was well up to
the high record. In Brooklyn nearly
Sla 10000 more OF holdings were sold
while in the other part Of the metro
politan district the totals realized
swelled the entire volume To S70.-
900 600.
The great bulk of these properties
came upon the market through fore.
closure and by far the largest part was
taken by the plaintiffs. Such properties
passed from weak into strong hand,
and the effect upon the market is dis.
tinctly for solidity.
But the voluntary offerings were both
large and we'll taken. They drew ueN
buyers and fresh capital to the real \
field. This was true particularly OF III,
large lot offerings. the most significant
Of which were in the western and east.
ern Bronx on the rapid transit subwaN
lines. and in the Long Island CITY sec
tion OF the dual rapid transit system
All ot thcs" offerings developed cast
buyers of tho small investment class.
Although properties I'm the new raiC
transit sections were offered many time,
in the way of testing market s,utim.n
1t cannot hc said that operators Of the
professional class have entered tn,
market as yet in any heavy manner
To discount the coming great trau~il
transformations. They have not arouse,
competitive bidding of a notah'" char
actcr for such properties and praCti
Cally all of the years dealings in th.
auction rooms have been Of the harE.ui
counter kind. This has resulted IN III,
placing Of many good properties "a
rock bottom prices in the hands of in
vostors who will hold them until pric,
levels shall have passed from low /,
high again.
Absence of competitive bidding fol
such properties in the transit znnc'
Of transformation would seem To iudi
cate that liquidation from general in
vcstmcnt causes in keeping with Other
investment markets had been euougl
to counterhalance the natural tcndrn
Cics of enhancement which should have
manifested themselves IN the mctropoli
tan market a.S "A result Of the immueu
great transit developments. This leaves
the greater part Of the transit oNulu
| ton for the future 40 FAR as rcalt,
values are concerned.
From every viewpoint il can be- sal,
! that the metropolitan realty auction
| market during 1913 has behaved mucl
better than any of the other standar,
investment markets.