Evening star., 1932-07-30


Mortgage Money Scarce.
The nineteenth semi-annual survey
of the realty market conducted by the
national organization, which is based
on confidential reports from member
boards in 358 cities of the United States
and Canada. reveals an almost total
lack of mortgage money supply IN city
after city as the dominating feature
of the real estate situation for the flrSt
six months of the year.
L. T. Stevenson, president OF the Ma
tional Association of Real Estate
Boards, in discussing the effect of the
new legislation, which creates a credit
reservoir, with capital up to Sl25OOO,-
900 for the benefit of home owners,
said:
dous support. The promise of subStan-
tial aid in long-term credit Tor the
home owner should stabilize values of
existing homes and strengthen the gen.
eral real estate situation"
Shortage Is Noted.
In its semi-annual report, the asso-
citation declared that even slight i'm
provement in business conditions would
serve to release a large amount of
building construction. An appreciable
business recovery would leave prac-
tically every city with scme building
shortage. Traces of an incipient short
age in this respect already begin to
appear.
Unemployment. reduction of family
incomes, commercial curtailment, bank
ing and investment timidity-au these
have greatly reduced the demand for
space, but nevertheless the survey shows
a comparatively high degree of sta
bility."
The report reveals that greater real
estate activity than was present year
ago is under way in the West, North
Central, Southern Atlantic and Pacific
sections.
Activity Widespread.
"Cities of the largest size, those of
over 100000 population, and cities of
the smallest size, those under $4,000
population, are the two groups which
show the greatest activity" gays the
report. IN II per cent Of the largest
cities the market is more active than
last year, as also is the case with Is
per cent of the cities under $4,000
population"
Even under present pinched condi-
tions Of family income, the report of
the national association said, and the
consequent doubling up" Of families,
10 per cent of the 358 cities surveyed
report a shortage of homes. Seventy
six per cent of the cities reported
normal balance of supply and demand
in private family homes and only IA
per cent an oversupply.
Rents in general are at a lower
level than they were year ago." the
report states, but in most cases have
shown a greater holding power than
have selling prices Of real estate"
According to the F. w. Dodge Cor
poration, 1.-The present low ebb of resi-
Dental building contracts seems to indi-
cate that current activity in this field
Is virtually at the irreducible mini
num-" adding that residential build
ing is on the threshold of a definite
upward trend.
Reconditioning Is Active.
The National Association of Building
Trades Employers reports that builders
throughout the United States and Can
ada are developing house modernlza-
ton programs to take up current slack
in other departments of the industry.
Tt is expected that reconditionlng OF
existing buildings may become major
activity until construction swings back
to normal with the aid of the Federal
relief measures Just passed by Congress.
A survey conducted Independently by
the building trades employers group
revealed the encouraging fact that
"bright spots are revealed in several
large cities, while both pessimism and
optimism tinge the reports of build
ers' representatives" E. M. Craig, ex-
ecutive secretary of the association, said
recently that "relief at this time will
be a stimulant to construction because
it will engender confidence in the gen.
eral building public and bolster badly
shaken morale"