The Washington times., 1930-08-09
CAPITAL FLOWS
/ 0 REALTY \
VENTURES
sv
National Association Reports
Conditions From 428 Cities
AS Being Much improved

An Improvement in the supply
Of capital now available for real
estate loans in comparison with
the supply available six months
ago Is reported by the National
Association Of Real Estate Boards
following the completion Of 1t:
fifteenth SeIni-annual survey Of
the real estate market. The sur
vey was made by the association
from the collected reports OF 42t
local real estate boards represent
ing the principal cities Of the
United States and Canada,
This Improvement in the sup
ply Of available capital, the Ma,
tional Association points out, In
dicates that the fundamental
problem for increased conStruc.
tion- the problem of supplying
funds for wise building. projects
lis now presenting itself as
less difficult one probably due TO
the fact that capital Is less dis
proportionately diverted directly
or indirectly into speculative
fields and win tend to be placed
increasingly at the disposal Of the
home builder.
Comparing the situation today
and six months ago, when the
first results of the stock market
debacle were being felt. the report
shows that today 80 per cent Of
the cities report an equilibrium
between supply and demand in
real estate mortgage loans and
capital, 48 per cent report that
desirable loans are seeking cap
ital and % per cent report that
in the mortgage money market
capital is seeking loans.
The report six months earlier
showed that in So per cent of the
cities real estate loans were seek
ing capital: 10 per cent reported
q surplus of capital seeking in
veStment, and % per cent re
ported equilibrium between sup
ply and demand.
In the, present survey no ef:
fort was made to gather stats
tics on the actual amount of
money now available for conStruc.
ton in the various cities report
ing. The National Association is
now engaged in an investigation
to determine just what sums are
now ready to be used for build,
ing purposes.
The single family dwelling and
the apartment house have at
present healthy, normal ratio
Of supply and demand through
out the country as a whole. &C.
cording to the survey. The great
est shortage of single family
dwellings is reported in the West
North and Central States Mime
sofa, Iowa, North Dakota, South
Dakota, Nebraska and Kansas. I
In this region 35 per cent OF
the cities show some shortage in
the supply of single family dwell
ings, IS per cent report the sup
ply and demand ratio normal
and none over-building in this
type of property. The cities Of
these States likewise show a small
shortage In meeting the demand
for apartments. Nineteen per
cent of the cities are under-built
as to apartments. IL per cent are
over-built. and SO per cent report
a. good ratio between supply and
demand in apartment properties
With some slight shortage as
TO supply in single dwelling and
apartments, a proportionate per
centage of cities report increase
in rentals in the west north
central district. Thirty-five pei
cent Of the cities report that
rentals on single dwellings are
higher, % per cent report that
rentals on two-family houses
have increased and Is per cent
of the cities report increases in
apartment rentals.
However. so per cent Of the
cities of this territory report
single family house rentals the
same as a year ago; 81 per cent
reply that two family. house
rentals have not changed and
So per cent report stationery
rentals for apartments.