Evening star., 1937-01-30
BIG IMPROVEMENT
IN REALTY SHOWN
|NNAT|0NAL STUDY
Betterment of Market Is Re.
veaIed in 28th Semi
Annual Report.
BOARDS IN 253 CITIES
PARTICIPATE IN SURVEY
Prices Higher Than 6 Months Ago
and Rising in 80 Per Cent
of Communities.

A steady, healthy improvement IN
every phase of the real estate and
building business is indicated IN a
Nationwide survey just completed by
the National Association OF Real Es-
tate Boards. It was the 28th semi
annual report of the association on
the condition of the real estate market.
Reports from boards in 253 cities
are included in the survey. A great
amount of building activity during the
year was predicted for many localities.
Renewed demand for business property
is already reflected in higher rental
scales for the downtown sections OF
about three-fourths Of the cities IN
the country. This is considered one
of the most important findings OF the
real estate organization.
In cities where real estate advance
has been most marked, new building
is reported as having stabilized the
upward movement of residential rents.
New apartment construction has be-
gun to join new home building to
counterbalance the growing absorp-
ton of existing residential space.
Prices Higher Than Six Months Ago.
The very close relationship between
financing conditions and the outlook
for new home building is shown in
comments from individual cities.
Mortgage terms available, including
interest rate and the length OF the
mortgage term, are cited by city after
city as the dominating factor of their
individual situation in the market
outlook.
Real estate prices are higher than
six months ago, and are advancing
in 80 per cent Of the cities on i'm
proved property. The survey also
showed the first post-depression re-
ports of an advance in the price OF
home sites. The rise has been as
much as 10 per cent in many locali-
ties. Subdivision lots are selling more
actively than last year in two-thirds
Of the cities
Market demand is more active in
B6 per cent of the cities. Only one
city of the 253 showed any sag either
in market activity or price level. No
change from the level of last year
was reported by per cent OF the
cities
Every city of over 100000 popula-
ton reports more active real estate
market than year ago.
Repossessed property is still domi-
mating the market in some instances,
but the proportion is very much
smaller than was the case six months
ago.
The low returns yielded by savings
banks and similar institutions are
factor in turning idle funds into in
yestment real estate.
Findings in Survey.
Details of the survey findings as to
demand and supply of various types
of structures, mortgage supply, IN
terest costs and the like follows:
Residential space is shown TO pe
well absorbed. But Notwithstanding
the increased space absorption, rise IN
residential rents, while very general
over the country, has been gradual
This is true both ior detached houses
and for apartments.
Undersupply of single-family dwell
ings is shown in 70 per cent OF the
cities. Only IL per cent of the cities
report any oversupply. In a Like sur.
yey of six months ago rs per cent OF
cities reported an undersupply OF sin
family dwellings. The slight de-
crease would appear to be an lndlca-
ton of the balancin. effect OF new
home building.
An undersupply of apartments ex-
lists in IS per cent of the cities, &C.
cording to these official confidential
reports from local real estate boards.
One city reports every desirable apart
ment unit occupied. Only per cent
of the cities report any remaining
oversupply Of apartments.
No city over 100000 population
shows any oversupply in single-family
dwellings, but the very largest cities
(over 100000 population) in % per
cent of the cases show oversupply of
apartments.
Rents are up for single-family
dwellings as compared with year ago
in 90 per cent of the cities and are
down in less than 11a per cent Of the
cities. Apartment space is higher in
s6 per cent Of the cities and not a
single city of the country shows any
down trend Of apartment rents.
The amount of increase most COM
monty reported is only about a 10 per
cent increase. Approximately half the
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