New-York tribune., 1921-05-22
By Robert w. Dasey
iNaJba Estates Corporation

What is the present country home
market, and why? Should buy now,
and why? ''Your guess is as good as
mine" is the general reply to this
question. but close study and analysis
of existing conditions should enable
homeseekers to arrive at 3 sound con-
clusion. AS in any other like COM
modify, there are three elements that
control the market demand. supply
and price. The price, of course, is the
vital factor, and this is regulated by
the demand and the supply.
The demand for country homes is
greater to-day that at any other time
in the history of suburban communi-
ties. The files of development and
building companies sare full of in
qpiries from prospective purchasers
who are undecided as to whether to
buy now or later. This lack of de
cision among homeseekers is due to the
fact that they are laboring under the
false impression that the cost of
building is coming down and homes
will be cheaper. This condition has
developed what is termed shoppers
market" composed of homeseekers
whose delay is vivid reflection of
their lack of decision.
The supply is best shown, probably
US ASCSAt SIdLiSJiCS, Wn1CH
disclose that during the last year
throughout the entire country only
10000 homes were built to meet the
demands for 1,250,000 actually re-
quired. The actual shortage of homes
in New ork City alone is over 10o,-
OOus and as increasing over, 25, 900 each
year. while the erection OF housing ac-
COMMUNICATIONS is very small fraction
OF that samou The rent laws gave q
temQoEacx aelief to the housing situa-
ton last yeaS. but it was only brief
re3Eefdt anust be horne in mind that
the ,uesse rent laws expire next year,
and that &he schief result of the rent
lawR was almast q cessation of housing
operztlonsg the result of which win be
ernphasized when the new and real
housing proh arise next year.
SaEntfpns Being Considered
The ihousing solution is a national
pEobfsTn. Various remedies are being
advanced sJbut the effects of these will
not be felt Immediately, even if
ADOPTED. Provision is now being con-
sidered by the United States Senate
Committee, on Reconstruction and In
dustry to enact law compelling the
Federal Reserve Bank members to set
aside 80 per cent of their savings de-
poslts for the exclusive purchase of
first mortgages on improved realty;
also an amendment exempting taxation
on loans up to $4,000 on improved
property and bill for the exemption
OF tax in case of reingested excess
profit and incomes from real property
IN dwelling construction. Here in New
York City the $5 600 tax exemption for
the next ten years applies to houses
completed after April /, 1920, or
started prior to April 1, 1922; therefore
this decided saving is available only
to those who purchase new homes at
the present time.
The price. Prospective buyers who
are waiting for prices to come down
should become reconciled to the fact
that prices are down as low now as
they will be for long period. 1t is
useless to expect to readjust the build
ing industry on a basis of lower prices,
This will have direct tendency to
widen the gap between the supply and
the demand. Forget the period before
the war" and stop quoting what Won
might have done before 1914. This IS a
great progressive nation. Great changes
have taken place, and particularly so
IN the hearts and minds of men. A
nation of people like ours will not