The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-03
Other Conditions Have But
Helped to Accumulate
Basic Fact

Y is a good many years since real
ESTATE, brokers have been compelled to
deal with a market in which there was
a.. little money as during the last year.
and tho results Of this condition are to
%, seen on every hand. Not only has
trading nccn decidedly limited, but even
I.c comparatively few deals that were
r,poricd during 1914 were largely on a
basis VI exchange. Building. especially
during the last half of the year. has
N,cn almost at a standstill and builders.
unable to finance operations. have not
committed themselves to new proper
lies But that was not all. In most parts
az the city the adjustment of values
which started several years ago has |
zen continued, with the result that
,outics have been largely reduced and |
m some cases wiped out. on account OF |
depression throughout the business
world there has been only limited |
demand for new space which has given
no Foundation on which to base or
build values.
while there has been no general at
,,up, made to cali overdue mortgages
while property owners continue to pay
'.Nes aud interest. IT, Is known through
uui tine real estate world that lenders
.ec' that many properties are over
,uo-tgagcd and thar for the sake of
.tfc'y the loans must be reduced. But
here has been money neither TO re-
pace the rtgages nor to materially
reduce them. and the lenders are under
fgc painful necessity OF leaving their
money where 1t is or Of taking over
properties they do not want.
Those. then are the conditions under
which the New York real estate mar
>ot NJ 1914 comes TO a close and that OF
1915 starts. Depressing the outlook is
without doubt. To many real estate
brokers and operators the last year has
been ru.uous Should q similar state
~ affairs continue through mother year
. would probably mean tn elimination
~ many people from the activities OF
the real estate world
\ careful examination Of the business
OF the las, twelve months reveals how
ever moderate amount Of activity.
which. while 1t does not balance the
real estate ledger. helps to sustain the
often heard theory that New York city
real estate is the best investmcn. prop
erty TO own. II is impossible to speak IN
glowing terms OF activity in any line OF
industry during tine last year Bank
ne mas had its setbaclts: commerce is
largely tied up; manufacturing is
greatly hampered and the story the
railroads have to tell is OF the kind TO
inspire even the most dowrcast real
estate owner with courage, While all
this Is 80. New York real estate has con-
;lnued even in the recent most difflcult
times TO show limited activity which
has resulted in the absorption of high
class properties and consequent pre-
pairing Of the way for a new demand
FOR properties for Improvement when
conditions in the money market begin
to return 20 normal. In evidence Of
this there is printed elsewhere in this
paper a list Of the most notable transact
lions 81 the year and for the purpose
these deals have been selected which in
yolved properties the asking prices for
which in every case announced To
$500 900 or more. From this list It will
be seen that transactions OF this class
total in sales and resales an even NIFTY.
The asking prices of the properties
named amount to almost $4,000, 900,
which means that almost that volume
OF new properties have been perma-
nently removed from the market for
investment or Improvement and That
builders Of nearly that much property
will be in the market for more as soon
as the way Is cleared for successful
operation.
But these were only the largest trans
actions sales which would have been
notable in any market. search or the
records will show several hundred deals
for new properties valued below ths
half million dollar mark, most OF whicr
must be considered removed from the
market and opening the way for ne"
demand.
What stands out, however, in all THU
trading is the great volume of business
done with the exchange OF very little
cash Nine deals out of ten II woult
seem had an element OF trade. and in
auiry into the terms Of number o
transactions reveals 1he fact that equi
ties in small properties and mortgages
made up the whole purchase price o
notable properties. the brokers IN suci
transactions taking their commission
IN some instances in notes. In com
paratively few cases did builders receive
m these transactions properties Whicl
were useful TO them for improvement
purposes, but chiefly small parcel
which are readily salable when there
any kind Of market Only rev SAFE
OF THESE exchange properties h"NO
reported, but when conditions are righ
builders probably will be able to dis
pose of their small holdings In trade 10
buildable land.
This selling by builders has been Tn
principal activity OF the year IN rss
estate, for there has been pracuchii
no assembling OF plots for future sal
to builders nor has there been an
great amount Of buying OF older prop
critics for investment. Even down I
the selling of cheap lots In ontlyin
districts. the year has lacked seInplshc
10 the activity of former years VINE
the small investor was able and willin
10 puy even though the big fellow al
refrain.
DESPITE the nifty sales OF propertit
valued AZ half million dollars or NOR
ana the sales Of several hundred prop
critics valued at lower rates broker
and operators everywhere Will say th'
business has been worse this year ina
ever before. It seems that every yea
FOR tho last half dozen the same s'or
Each succeeding NPt