The Washington times., 1928-01-31
RHEEM F0RSEEs.
REAL TY RISE
BIZ RICHARD HATTON

passing OF the period Of careless
speculation and sterilization OF In
vestment, is the belief OF Edmund
Is. Rheenn vice president Of Swart-
zel1. Rheenl and Henseys one Of the.
Oldest and most conservative real
estate and investment houses IN the
National Capital.
Viewing the situation with the
confidence OF expert knowledge and
long experience. Mr., Rheem an
alyzes the situation for The Herald
as follows:
.aThe general air Of pessimism
which has pervaded the field Of real
estate has really been the cause
and not the result OF any slacken-
ing of activity during the last IL
months. A year ago things were
very brisk. Building activity was
marked. money for operations was
plentiful and sales all along the
line indicated that there was a
good market awaiting the specula-
tor who was producing something
the public needed or wanted.
Failing Off IN Spring
..Then last spring there was noted
q falling off in the purchasing mar
ket and Immediately word was
passed around that things were not
SO good. which actually made things
tho way they we're supposed TO be-.
On account OF this chatter, money
for junior financing frightened. and
the buyers, not knowing the future
OF the market, held off to see which
way the pendulum would swing.
244N
OF operations, pulling In Of ex.
tended lines and, as natural re-
action. "a smaller volume Of work
leading to unemployment in the
building trades and taking out Of
the purchasing market in all lines
of trade. that much more money
with which to buy.
There was all sort Of talk about
overbuiIding. too much extension,
drop In property values and every
thing which goes with pesslmism in
business. Alarm was spread which
caused frowns upon the brows Of
bankers and uneasy midnight hours
III the lives Of operators.
What Caused Pessinism!
What was really the cause? Did
business 20 from good to bad almost
overnight? Did Washing ton ais we'll
as the whole country, become over
built III q month? Did people stop
renting and buying homes stimuli
taneously as sort OF d plot To ena-
barrass builders2
THE real reason for the air OF
pessimisTn was none OF these. Busi.
ness did not go from good to bad
but what happened was that busi-
ness went from very good to good,
and 1t had been going that way for
some time. Only those who realized
this could appreciate II when the
time arrived, for those men had
started to reef their sails and were
prepared to come back to normal
gait after going at q double quick
ever since the war.
THE natural shortage Of housing
accommodation brought about by
the diversion Of building trade into
other occupations at that time, made
1t possible for almost anyone to build
something and make a profit with
the result that after the war, not
only did builders return to building,
but also the baker and the candle
stick maker, with a result that every
body was working and making money
faster than they had ever made It
before.
Weed Out inexperienced
This was a period-the last 10
years-when any sort OF a building
on any sort of a lot would show a
return--and for the most
part that was the kind of q building
which was produced. The result was
that we caught up very quickly ami
on that account slowed down more
quickly as the goal was approached.
the last year has wit
messed the passing OF many an in
experienced builder from the field,
leaving now, only those who know
what they are doing and where they
are going.
and so today. the builders and
operators are picking their sites with
care and giving the public not what
1t has to have but what 1t wants.
The homes of today give the prospec.
tive buyer every feature he would
incorporate into home IL he we're
building for himself, and the renter
is benefiting by larger rooms, more
light and air space and equipment
which q wartime tenant would have
considered symptoms of the millen.
mum.
with. the dawn of 1928. this con-
dition exists and new buildings are
Immediately occupied and the sale Of
new houses is much better. The
For Rent signs which are seen are
mostly. on the immediate postwar
buildings, and in a great many cases
this has been correctec by proper
reduction of rent and efficient man
agement. Today the experienced
builder is producing something in
finite1y better than ever before, the
public is beginning to understand
that it is receiving something in
finitely better than it was ever &C.
customed to or ever expected, and
as a result the real estate market as
a whole is showing signs Of activity
which is ironing out the turrowed
brows.
Future Rose CoIored
"The future is rose Eolored-espe-
cially for Washington. There is no
security in the world tand this is a
conservative superlative) more stable
than Washington real estate. There
is no investment which promises a
better chance of increase In value
mot a jump, but steady climb. and
investors who have had experience
in various securities during the last
decade know today. better than ever,
that their money Is safe in first
mortgages on such security.
1.-The period of careless speculation
Is over, and in its place is business
which is sound, based on sound Sc
curity and a safe, optimistic future.
From present indications, the COM
ing year will be one of good business,
annnf,1l1,, MANNED aYnnltlX exAcll ted