New-York tribune., 1920-09-20
Real Estate News

the entire construction and building
material supply markets dictate clearly
still weaker price conditions during the
next sixty days. There are at least two
months Of doubt and disquietude ahead.
The reasons are, first, the pending ae-
tion of Legislature that has already
proved itself hostile to the building
construction program; second, the un-
settled industrial and economic condi-
tions usually attendant upon the clos
ing days of Presidential election cam
paign.
In the meantime manufacturers are
either unable to produce building ma
teriais because they cannot get cars
with which TO transport raw products
to them, or have been forced to close
down because they cannot get sufficient
cars to transport the goods when thew
nave been manufactured. Even where
cars are available the consignees do
not want deliveries because the new
building projects for which they were
ordered have been held up indefinitely
or heslsancy on the part of leading in
st'tut!ons to make loans in the face Of
such stressed conditions as now mo
vail. 90 A'" pre-
Under such conditions, with tight
ened bank credits in manufacturing
centers, the building material manu-.
.facturer will be inclined to make con.
cessions on price. Lumber, clay prod
ucts. !inseed oil and some other com
modlties, notably in the equipment de-
partments, already have shown weak
ness long expected under such circun-
stances. Others say they will not fol-
low suit. but in times like these, where
individual action is the sole choice be-
y1,in -
tive easiest to follow is to throw what
is available to sell onto the market at
attractive figures.
Timidity Shown by Investors
In this distressful situation the
bulldlngi INVESTOR seeks his opportu
nifty. He is retarded from sweeping in
with his building plans by the hone
that perhaps the price of materials will
go lower, if he waits. He asks almost
daily how much lower they will 90, and
whether they are going to stay low.
In such inquiries there is revealed q
slmidity against a general and pro-
ionged price break as great as that
t'mldlty which prevented him from en-.
terlng the market on price-rising
market.
There is only one hope for q per-
manent lowering of building material
prices, not from the present price lev
els, but from price levels prevailing
next spring. That hope lies in the con-
tinued volume Of immigration. Ship
companies tell the Department Of La
Dor that immigration capacity west
ward is taken for a whole year at the
rate Of many thousands a month. AS
basic building materials are almost en-
tirely. the product Of unskilIed labor.
this factor is likely to have an effect
upon building material production, but
not for another year, at least, because
fuel is also factor in price movement.
Coal mined for next winter will be
sold on this years costs. The 1920
building material season is already
closing and much Of this years prod
ucts will go into next years construc-
ton. Prices will therefore carry this
years costs, which will not even be
definitely known until this year ends,
Any present price reductions repre-
sent genuine opportunity to the build
ing investor. 1t is largely a period of
liquidation by certain distressed hold
ers who are pressed by frightened bank
credits. 1t does not presage q return
to pre-war price levels now.
IA a