The New York herald., 1922-12-24
SEES NO DECLINE IN
PRICES OF HOUSES
Brooklyn Broker Predicts
Present Level VIII Remain
for About z Years.
by ARTHUR j. HORTON.

Vfce-Presfdent Of Buikley & Horton Co.
Is the tendency of prices OF residential
property downward?
We have been asked this question con-
tinuously since the ending of the post
war period. when prices of real estate
and everything else practically doubled.
Our answer has been. and still is, that
the prices of residential property which
sells at moderate prices show scarcely
any downward tendency. Neither do
we think they will increase other than
| the normal increase due TO the general
enlargement and Improvement OF the
/ city.
1t appears that we are now In mar
ket condition where present prices will
remain stable for a long time-that is,
those prices which are not inflated or
based on erroneous information of re-
cent sales of similar property. We feel
confident our opinion is soundly based
and is not given merely to encourage
the buying of property AS a matter
Of fact, II a broker could show the
sellers tendency for prices to decline
and thus bring prices down he would do
n wonderful business. as buyers are
plentiful II prices could be brought
down somewhat. The facts show moth
Ing other thin that prices will not de-
cline to any substantial extent for a
long time.
Prices of real estate must keep con-
sistent to cost of construction. That
Is the prime factor. Overproduction,
which would force prices down by COM
petition, is remote, because when the
builder finds he can't sell and rent at
profitable prices he will Immediately.
stop building. Tax exemption has in
duced building somewhat, but any alb
normal Increase in building sends ma
terial prices and labor up so that selling
prices do not change.
VIII the cost of construction come
down? Cost of construction is ulti-
! mately based on the wages of labor.
II labor comes down cost OF construc-
ton will come down. VIII labor come
down? Or. should labor come downe
Those In closest touch with the labor
market and employing thousands of
men are increasing wages. so evidently
they don't feel that the laborer is over
paid, on basis of living cost or on basis
OF the supply and demand In the labor
market. Labor In building trades Is be-
coming scarcer daily and they are ap-
parently not overpaid in comparison
| With other trades. so that the pros
pect Of labor coming down seems re-
| mote.
| into the real estate market Among
them is the desire people now have
brought on by the increased rens, &c,
TO get away from the landlord and
''own their own house" This desire
has increased enormously. 1t Is. and
should be, greatly encouraged. 1t makes
interested citizens and encourages
thrift.
The market for higher priced resi-
dences is controlled greatly by general
| business conditions Residences of this
type are built, bought and sold regard
less of cost The demand for this type
OF property decreased after the period
of large postwar profits was over.
Recently It has shown a tendency to
increase. due to better general business
conditions, &c When general business
| conditions are good the demand Is
| great and the supply limited. and vice
| versa. sf
One OF the largest corporations in
the country recently compiled statistics
| showing that prices of all commodities
including housing. will remain at their
present level for at least the next
seven years.