Evening star., 1936-11-21
HOME FINANCING
HELD INCREASING
Building and Loan Units
Forecast Rise in Realty
Values.
srecial Dispatch to The Star.

DEeClAl DlepatCu 10 uc Guar
CINCINNATI, November 21-Resi-
Dental vacancies extremely hard to
find, rents increasing from to 40 per
cent over this time last year, and
likelihood that considerably more real
estate will be disposed of by lending
agencies than will come back on their
hands from older borrowers this year,
are significant factors in the national
outlook as seen by secretaries of the
various State organizations of savings,
building and loan associations.
Reporting to H. F. Cellarius of Gin
cinnati, secretary-treasurer of the
United States Building and Loan
League, as of the end of the third
quarter, league executives in two
thirds of the States felt that the assets
of thrift and home financing insti-
tutions operating there would show
an increase for the year 1886.
Increases in real estate values in
1886 over 1885 as estimated by these
men whose activities demand an un-
biased view Of the situation are any
where from to 80 per cent for
State averages, with 10 per cent OF
the most frequent increase registered.
In Alabama and Washington State
the estimates showed 80 per cent
increase in real estate values, while
the building and loan league secre-
taries from Colorado, Indiana. Mon
tana and South Dakota reported 25
per cent increases, when figures for
each 9tate were averaged.
Comment on Vacancies.
The comments of the group on
vacancies point to the fact that "the
only vacant houses are those which
need reconditioning" Some 60 far
ther than this summary and indicate
that vacancies are at lowest point
In last IS years." or "99 per cent
rented" and again vacancy per-
centage smaller in all types of dwell
ing units throughout Wisconsin today
than at any time in the past 10
years" and cit is almost impossible
to get a moderate-priced one-family
dwelling for rent in the North Jersey
Newark area and this applies in other
parts of the State" Both Carolinas
give the terse comment, mo vacan-
cies."
Closely tied up with the vacancy
situation, their survey of the present
trend of rentals, as compared with
1885, gives 10 per cent as the most
frequently recurring increase in rents
as measured on a State basis. In gen.
ersl, it would appear that the up
trend in rents has gone ahead of the
rise in the value of real estate.
although there are some exceptions
TO the rule, notably the States where
the highest leaps in real estate values
show up.
See End of Old Cycle.
"The encouraging observation point
ing to the definite finish-off of the
old cycle of liquidation in real estate
and real estate debts comes in the
expectation by great majority of the
States reporting that associations
within their Jurisdiction will sell more
real estate during 1886 than they take
back" said Cellarius. THE delin-
quency situation is reported so greatly
improved that, except in scattered in
dividual associations, it is no longer
o problem. The rise in rents and
changed psychology regarding real
estate have contributed to this result.
In the States where this desirable bal
ance in favor of sold real estate does
not appear in the offing by the end Of
1886, there is confidence that the first
months of 1887 will tip the scales the
other way"
Cellarius said that he had reports
from four States in which receipts OF
new money by the thrift and home
financing institutions were termed
from Is States where the
amount was reported as good" and
from 16 others fair" There were
also four States in which about 10
per cent of the associations are re-
stricting the receipt of new invest
ment money because it is coming In
too fast to find a suitable loan de-
mand. A few of the institutions in
all except Is States have some such
restriction.