Evening star., 1936-08-22
REALTY OUTLOOK
FRIGHTENED BY
z DEVELOPMENTS
Residential Properties Show
Increase in Earning
Power.
MORTGAGE MONEY
COSTS ON DECLINE
Special Inquiry Supplements
semi,Annual Survey of Real
4 Estaet Boards.

The two important factors OF the
current real estate outlook-increase
in earning power of residential prop
critics and the general, though small
decrease in mortgage money costs Tor
new home building-are measured IN
detail in special inquiry made by the
National Association of Real Estate
Boards supplementing its twenty-sev-
enth semi-annual survey Of the real
estate market.
The inquiry, findings of which are
released today, gives glimpse of the
variations now existing between in
dividual cities in regard to factors at
fecting recovery. Comments received
from individual cities indicate notably
the groundwork laid for new-home
building, and the degree to which it Is
already on the way.
Mortgage money rates were reported
upon by 249 cities. Rent change for
apartment space was reported upon by
1876 cities. Rent change for single-fam-
lily houses were estimated in reports
from 222 cities. Reports are by the
associations member boards in the
cities.
Interest cost for financing new
homes is lower than it was even six
months ago in almost every section Of
the country, though the change Is only
fractional, the inquiry shows. Degree
to which new home building is getting
under way varies with the degree to
which local industry and commerce
has revived family income, but is af-
fected also very appreciably by the
degree to which long-term financing
for the kind of homes now in demand
and at terms practical for the new
home owner has become available.
City after city reports present building
costs as large factor is holding back
new construction.
Residential Space Demand.
Significant of change that may be
coming, demand for residential space
Is increasing more rapidly than pres
sent construction is supplying new
space. The increased demand is re-
fected in rent increases. The amount
of increase most commonly reported
is 10 per cent, both for apartments and
for detached houses. Increases of
only per cent are more common than
are increases of Is per cent. Occa-
sional cities report increases OF as
much as Is per cent. Thes care some
what more common for houses than
for apartments.
Notably fewer cities than in the as
eociation's survey Of six months ago
report their local market still clogged
with distressed properties.
What is the actual interest rate at
which first mortgage loans on moder-
ately priced new homes are now most
commonly being made in your COM
munity?" the association asked its
member boards, paralleling like inqul-
ries attached to recent previous semi
annual surveys.
The 5la per cent rate has gained in
usage relatively in the last six months,
the replies show, and in one section OF
the country, the West North Central
section, per cent has become the
rate most widely in use. But in spite
of the recognized down trend Of inter-
est rates generally, in actual present
practice per cent is still the domi-
nant rate, which the family buying or
building a new home must pay for its
financing.
Greater variations appear between
cities than have been seen in the last
year and a half For the first time, in
these reports at least, one city Gin the
East North Central section OF the
country checks 4 per cent as rate
See OUTLOOK, Page C-5)