The Washington times., 1927-11-26
SIGNS Of BOOM
ARE LISTED

signposta by which investors
may recognize the approach Of in.
Creasing activity in urban real es.
tate, sometimes called boom, have
been outlined as follows by w.
Burke Harmon, with the caution
that all indications must be con.
aidered as a whole, and not sepa.
rately.
/. Money will be cheap. There
will be a large volume available for
investment. Time money rates on
the stock exchange serve as good
index.
2. Stocks and bonds will be COM
paratively high in price, meaning
that their yields are lower than for
several previous years.
3. Industry generally will be re-
covering from a period of depres-
sion. Freight car loadiugs will be
reaching a higher average than
usual.
Unfinished Orders
4. Unfinished orders of the L. s.
Steel Company, which are reported
monthly, will be mounting after a
period Of extended decline.
5. Unemployment will be gen.
orally diminishing.
6. Farm prices will have been on
the upward grade after an extended
period of agricultural depression,
This consideration deserves more
Importance than it usually receives,
because of the large influence which
the purchasing power of the farmer
still exercises over urban prosperity.
Z. Commodity prices generally will
be moving upward after a long de-
cline, as indicated in the monthly in
dices of Bradstreet's, Dun's and the
Department of Labor. :
8. An increase in general trans
portatfon facilities may be noted.
This may either consist OF increased
automobile sales, or the extension OF
metropolitan rapid transit facilities,
such as is occurring now in New
York. 1t may consist Of both.
8. Neighborhood characteristics
and neighborhood populations will be
shifting: as a result either of new
transportation facilities, or better
living standards.
Return ON Rents
10. The annual return on rents
will generally be higher than the re-
turn on well.secured bonds and sea-
Goned stocks.
1T will be noted that this measur-
ing stick allows both for national
and local economic conditions" said
Mr.. Harmon, who is president of the
Harmon National Real Estate Cor
poration. National business condi-
tions have a particularly important
Influence on real estate values in a
city like New York. where the bust
ness of half the country is initiated
or transacted.
by comparison with the last few
years history, ait will be found that
this index forecast with great GER
tainty the real estate boom that had
its inception in 1922 and 1923, after
the long decline in general business
activity that occurred in 1921 with
slow recovery in 1922.
''At the present time it will be
noted that we are in half way pc
fiod, in which Industrial activity is
just starting to recover after a de-
preston. Steel orders are just be-
ginning to mount, there Ia still unem-
ployment in fair volume, farm prices
are higher than for several years,
are IL
The return on high-gradc stocks and
bonds is decreasing.
Auto Sales Fall
Automobile sales have declined
radically this year, but New York is
increasing rapid transit facilities
faster than at any TINA since before
the war. The various indications
suggest that a. genera! business re-
covery will be in full flourish by
spring, with renewed interest in the
real estate market to fellow some
months later.
THE next few months, in other
words. will provide an excellent OPP
portunity to acquire real estate hold
ings at an attractive price, in antici-
patton Of the upward move which
should again be in evidence toward
the close Of 1928. Those who make
real money in real estate invest
nents are, of course, those who are
foresighted enough to purchase be-
fore a boom comes into frll swing"