Evening star., 1934-12-22
EASING Of CREDIT
PRESAGESREv|VAL
OF BUILDING HERE.
Experts Predict Period of
Intense Activity Will Start
in Spring.
CITY is EXPERIENCING
SHORTAGE OF HOMES
Influx Of New Federal Workers
Boosts Rents and Arouses
Optimistic Forecasts.
BY JAMES Y. NEWTON.

BY JAMES Y. NEWTON.
A gradual loosening of credit for
home construction has been apparent
in Washington during the last few
weeks which, according to leading
real estate and banking men, preSages
one of the brightest periods in the
history of District building.
Most of the local experts in the
various fields of construction believe
this period of lively activity will be-
gin with the coming of Spring. They
believe that private finances will be
thrown into the home building market
in such quantities that, regardless of
what course the Government housing
program may take, good times will be
brought back to the Capital real estate
men and to members of affiliated
businesses.
Carl J. Bergman. president of the
District Building and Loan League,
declared this city will experience the
beginning Of its greatest era of build
ing activity next Spring. He pointed
to the vast reservoirs of private capi-
tai which are ready to be poured into
the mortgage market, and to the
shortage of residential quarters.
Siddons Also Optimistic.
Frederick P. H. Siddons, president
of the District Bankers Association,
asserted that a general easing of
money for small home mortgages has
been apparent. He said this was
largely responsible for the increase in
houses noticed in local building
records of the last six weeks. Mr..
Siddons likewise thinks that the
Washington construction business is
due for a real reawakening soon.
Washington has been undergoing a
period of rising rents in regard to
both dwellings and apartments. The
shortage of residential space is re-
garded as more acute than in any
period since the World War Experts
who have studied the history of the
real estate and building business de-
clare that in almost every instance
a similar situation has been a fore
runner of an era of great construction
activity.
For the first time in years financial
institutions have been asking for and
receiving money to invest in real
estate. In recent weeks insurance
companies, which have always fur
nished a large portion of mortgage
money, have been anxious to make
building loans. Large financial inter-
ests outside the city have shown re-
newed interest in Washington real
estate as a spot for investment.
Several Investments Made.
A number of large pieces of real
estate, such as apartment houses, have
changed hands in the last several
weeks, and these have not been FORE
closure sales. The purchases have
been for investment. ALI these, &C
cording to those who know most about
the business, are indications that 1885
will witness the end of the long pc
riod Of alag" in the construction in
dustry.
When real estate has emerged from
depressions of the past, experts say,
there has always been, first, period
of small home construction followed
directly by return to activity in the
larger building fields. During No
vember more permits were issued for
small residential units in Washing
ton than in any month Of the year
This despite the fact that November
is considered normally bad building
month. In December, SO far, there
has been more than 100 per cent in
crease in home building over last
year.
Morton Luchs, vice president of
th4 hor " TJtnIrc Cn stated
that recently there has been con-
siderably more money available for
mortgages on houses already con-
structed, and that money for building
has loosened some. He expressed the
belief that in the next few months
the dam that stopped the flow of
building money will be removed and
the business will return to its normal
state.
Taylor Sees More Capital.
w. Waverly Taylor, prominent
home builder, also has noticed the
beginning of a flow of money into
real estate. He said there is much
more available capital for building
now than there has been in the last
year.
Morris Cafritz, president OF the
Cafritz Construction Co., declared the
stage is set for prosperous year IN
1885. He pointed to the excellent
condition of rentals, due largely to
increased Government personnels,
which should necessitate additional
buildings. He said his firm has re-
newed activities in the new commu-
mites of Greenwich Forest, in Mary
land, and in Northwest Park, just oil
Massachusetts avenue. In the two sub
divisions there is sufficient ground to
build several thousand more homes.