The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1935-02-09
|NTEREST.RATES
ON DECLINE,
HOWEVER

Rise of real estate prices, eSpe.
cially in cities of over $4,000 pop
ulation, a more active market in
cities all over the country. rapid
absorption of residential space, in.
Guiding apartment space, and
some measurable return of capital
to real estate mortgage invest.
ment are shown in the twenty
fourth semiannual survey of the
real estate market, made by the
National Association of Real ES-
tate Boards, released today.
Covering 268 large cities. the
survey is based on confidential re-
ports made by local real estate
boards. 1t show principally:
1. Actual shortage of single
family dwellings has been
reached in more than half Of
the cities reporting and no over.
supply remains in any city Of
more than 100000 population.
RENTS HIGHER
2. Apartment rents are higher
than last year in 81 per cent of
all cities reporting.
3. Rents for single family
dwellings are up in So per cent
of All cities repOrting-the high
est increases are in cities of over
100000 population.
1t is pointed out in the report
that rents for houses are still ap-
proximately 80 per cent below the
1928, level, however.
1t also was revealed in the report
Of survey that private capital, in.
Guiding insurance companies, COM
mercial banks and other financing
agencies, are again coming into
the mortgage field-but mortgage
loans fo- building or for financing
are mainly at scaled appraisals.
Interest rates on real estate
mortgages, in most cities surveyed,
are showing a tendency to fall,
especially in metropolitan areas.
Market Active
A more active real estate market
was reported by SO per cent of all
cities, less active market by only
5 per cent of the cities, while 81
per cent reported activity on about
the same level as last year. In.
creased activity has evidently come
first in the larger centers. OF
cities over 100000 population, SO
per cent show a more active mar.
ket, and none less active market.
Geographically, the South At.
lantic section. in which the Dis.
trict of Columbia is included, led,
with 81 per cent of it's cities re-
porting higher prices and none re.
porting falling prices.
Space absorption and rents must
be studied together. 1t is signifi.
cant that while single family dwell.
ings show the most general short.
age, and were the first to show
upward trends in rents. apartment
space at present is showing the
most general advance.
The District of Columbia, judg.
ing from the survey, apparently
shows cross-section of the East
ern area in the matter of rentals
and occupancy.
Shortages Reported
Only S per cent of all cities re-
porting show any remaining over.
supply of single family dwellings.
Actual shortage is reported by So
per cent of the cities, normal bal.
ance Of supply and demand by ~
per cent. Every city of the largest
population groups reports either
a shortage or normal balance;
none show any remaining over.
supply. Geographically, the most
general shortage is shown in the
Western South Central group and
in the Pacific Coast group, in
each of which 70 per cent of the
cities were surveyed.
Realtors generally hail the re.
port with satisfaction. It reveals,
according to local observers, that
business is on the uptrend, but
the progress is steady and healthy
and there is no sign of boom
activity. The real estate industry,
they say, will be several years in
reaching it's peak again.