Evening star., 1936-05-30
REALTY OUTLOOK
|. TERMED HEALTHY
Realtor Boards President
Stresses Prospects in
Convention Banquet.
krecial Dispatch to The Star.

! krecisl Dispatch to The Star.
! INDIANAPOLIS. May 30-The
healthy outlook for real estate to-
day, as measured by changed demand
for space, rising earning power, trend
to lower interest costs, indicated future
money supply and accelerated building
was emphasized by Walter w. Rose,
Orlando, Fla, president of the Ma
tional Association of Real Estate
Boards, in an address delivered here
last night at the closing banquet of
: the Great Lakes Regional Convention
of Realtors, which brought together
representatives of five States, Ohio,
Indiana, Michigan, Illinois and Ken
tucky.
Reviewing one by one the major
economic factors which point to a
rise of real estate activity, Mr.. Rose
said:
We have proably never known a
time when the average investor and
the informed investor alike had such
great confidence as they have today
that real estate values are going up,
that we are probably at the beginning
Of q long-term upswing,"
Distress Prices Gone.
As to the effect of this on sales, he
added: People who are not under
emergency pressure to sell are inclined
to ask tomorrow's sale price rather
than that Of today. And buyers are
many of them still shopping around
to find yesterdays distressed market
prices, which in many communities
have completely disappeared"
"A very real factor in the rapidity
Of real estate recovery has been the
human factor, the advance we have
made in understanding the principles
of real estate appraisal and the funda-
mentals of real estate use and man.
agement," Mr. Rose said. Emphasizing
the Importance of a trained under
standing of real estate and the crea-
tive function involved in finding the
best use for given property, he point
ed out that real estate brokers and
home builders of the period ahead, in
finding that best use, have in their
hands much of the future of our cities.
The one remaining serious draw
back to real estate advance is the
tax handicap" Mr.. Rose said. The
year ahead will be a critical year
in the whole movement to bring
economic justice into our tax system.
Here I am happy to report that some
IS States now have an active cam
paign to write. into their tax laws
an overall limit on the real estate
tax
Presidential Space Absorbed.
Going into the factors now shaping
real estates future he continued:
The fundamental figure which
determines the health Of the real
estate outlook is the relation of supply
of space to demand. For more than
five years we have constructed so
few dwelling units that the number
built was smaller than the number
which went out Of existence each
year. torn down or destroyed by fire
or flood. Population has increased.
Deferred marriages are taking place,
and today residential space absorp-
tion has gone so far that residential
properties for the country as a whole,
taking houses and apartments to-
gether. are as nearly as We can esti-
mate 81 per cent occupied
AS vacancies disappeared real es-
tate gave the country the most sub
stantial sign it could have of bettered
general outlook Rents advanced
Moreover an inquiry We recently
made in so cities shows that on the
whole, people are seeking better quar-
sters. Rates for apartment properties
are still about so per cent of the
1926 level. AS one consequence of
the greater security of rentable single
family dwellings the spread between
rent costs for single family dwellings
and apartment space is the largest we
have seen for a number of years"