The Washington herald., 1920-06-13
Further Soaring Prices
Predicted on Real Estate
In Washington for Months
Steadying of Values Looked
For, With No Slump,
When Crest Is Reached.
Tight Money Retards
Building.

With difficulties OF obtaining
building materials increasing, mon
ey constantly being attracted out
Of the real estate feid. and demand
for homes increasing. there seems
to be very little prospect for a low
ering Of real estate values in the
near future. In fact. those in close
touch with the situation are in
clined to look for a further rise in
prices. Even when the zenith Is
reached in home prices, there is not
likely TO be a fall. but the general
opinion is that they will hold their
own.
People who are contemplating
the purchase OF homes. but who
are inclined to hold OF under the
impression that there will be q
slump in real estate values making
IL possible to purchase property
much cheaper are very likely to
find themselves the losers in
amounts which will increase the
longer they delay in purchasing.
Every line OF thought in the real
estate field now seems to point to
higher prices. Money Is increas-
ingly harder to obtain every day
for financing real estate opera
| tions. Building materials are get
ting scarce, and this condition Is
likely to be further aggravated by
the inability to get freight cars on
which to ship the materials to the
markets where needed. Builders
who usually undertake home build
ing operations on a large scale
seem inclined to withhold further
operations at tiIis time. but this Is
apparently due to the difficulty OF
getting mortgage money which is
held at high cost rather than to a
falling of in the demand for build
ings.
House shortage 10 Continue.
While apartments are going UP
in some sections and there is some
building of homes. the operations
now going on arc not likely to take
care of the demand. The housing
situation is likely to be tight for
six years or more Some real es-
tate men who were approached dur
ing the week are inclined to the
belief that the scarcity will be felt
for ten years. 1t will take that
period for the situation to right
itself so that everyone will be
comfortably located in the home
of his ideals.
Evidence of such a fact existing
is contained in the action of the
National Association of Real Es-
tate Boards in recent convention
in Kansas City in memorializing
Congress to exempt all earnings
from real estate mortgages from
being taxed under the income tax
law for a period of six years. GEN
eral opinion of realtors from all
parts of the country was that the
housing situation would not be set
tied before that time. Washington
is not alone in this condition. it
may be seen.
Such a condition existing in all
parts of the country will work an
unprecedented demand upon pro-
ducers of building materials when
building operations are resumed on
a large scale, which will be just
as soon as Investment money may
be attracted to this field from the
field of industrials, in which direc-
tion 1t is now flowing. 49,.
Financiers Urge Building.
Financiers who watch for the ups
and downs in every field in order
to regulate their investments are
advising building now. Intact. one
of them Is letting a contract for a
building operation running into sew
eral millions, basing this action on
observations resulting in the opin-
ion that not only will prices in
building continue to rise, but that
they will not come down.
Realtors are fully cognizant OF
the situation, and are doing all they
can to convince the home-buying
public that it is doing the wrong
thing to refrain from PURCHASING g
property now in the belief. that III
will profit by an expected slump.
For there Is no slump existing. and
none in prospect. The only, slump
now which can be identified as such
Is slump in building which viii
only aggravate an already bad situ-
lfiop and sand hnyaee hiRher