The Waterbury Democrat., 1939-06-16

AOAA1G VI Q AlCW RchetSAAA AA4 ACotA CoeeAbS capital supply, one that has grown up in the past few years, is seen in reports from 262 cities made to the National Association of Real Estate Boards in its 33rd semi-an- nual survey of the real estate mar ket. Some of the findings:
 1. The availability of mortgage money is coming to be matter of the activities and inveStment opportunities of the various geo. graphical sections of the country, rather than simply of their near ness to money centers.
 2. Real estate sales activity is as high as last year at this time in more than three quarters of the cities, higher than it was year ago in almost 40% of the cities. But prices have softened in 29% of the cities. Outlook for the remainder of the year is for a higher sales volume in 48% of the cities, while only 138o look for de- clining volume.
 3. New suburban development begins again to emerge. "Sub- division activity greater than last year" is the predominant report. This is the first time this has been the case in these surveys since midyear 1897.
 Median Price Change: 10%
 The median price rise is 10%. Where prices have fallen off, the median decline is 1095.
 As was predicted in the associa- tion's January forecast for real estate in 1889 (published in Free hold, magazine of real estate, 1-1-39) prices show an increasing differen- tial between new construction and old, especially between new houses and large old houses. A split in price trend is noticeable between good properties and less desirable properties, especially in business lo- cations.
 With price trends discounted some what by the weeks of public sus- pense over war crises, the January forecast is standing up, item by item.
 In general large cities register more awakening of the subdivision market than do the small cities. Demand for homesites is expected to increase as the year goes on in 55% of the reporting cities.
 Lower Interest Rates
 Interest rates are lower than last year, and the outlook in 25%o of the reporting cities is for still lower rates to come.
 Business property sees prospect of price advance in 11% of the cities, and of increasing construction in 22% of the cities. Modernization is expected. Industrial property is very generally still static.
 Outlook is for higher real estate taxes in 42% of cities reporting, but in 99o of the cities there is reason able hope of lower taxes. High taxes arg reported in one of the largest cities to be causing industries to leave the community. Projected U. S. H. A. construction is frequently reported as deterring new home and apartment building. In some cities F. H. A. apartment projects are felt to have come too fast for best balance of the residential market. Geographically, the Great Lakes region makes the best report on market conditions, with 46% of its cities showing more active market and only 18%o a less active market than last year. But this region re- ports that in 42% of its cities selling prices are lower than last year, in- dicating that lowered selling prices at this time may mean more active market.
 Other "up" sections: The South east, with 45%o of it's cities showing a more active market and only 7% less active market; the North Gen. tral, with 45% in the up column, and 22% on the down side.
 Money Supply
 Plentiful mortgage money supply is a common story. Some cities say, Excess supply" Occasionally the report comes, ...Loans are be- ing made on a more conservative basis" In 829o of the cities capital is seeking loans. In only 8To are loans seeking capital.
 In every geographical section the dominant report is of capital seek ing loans. In three sections more than 90q6 of the cities show excess of capital over loans. These are the North Central section (94S), the Great Lakes section (92%), and the South Central section (91%). In contrast, the greatest percentages of loans seeking capital are found in the Central Atlantic states (where 13% so report) and in the Northwest (where 13qo so report). (In the