Evening star., 1939-01-14
Realty Market
Pace Gains
For 1899
Survey Points Out
More Money Ready;
Interest Suqs

The real estate market nationally
enters the year 1889 with pace that
in most instances already matches
or surpasses its progression gait,
the National Association of Real
Estate Boards finds in its 32d semi
annual survey of the real estate
market, compiled from confidential
reports from member boards in 274
cities.
Four significant facts revealed by
the survey are:
l. Increased supply of capital
available for real estate loans, and,
even more important, continued
tendency to lower interest rates.
The survey shows the most generally
favorable situation in respect to
both interest rates and mortgage
money supply that has ever been
recorded in the country's real estate
history.
2. Beginning, however, of differ
entail between old and new residen-
tial properties due to differences In
outlook for financing for those types
of properties, a differentiation that
city after city reports will be ac-
centuated if F. H. A. financing for
existing homes is allowed to go out
of existence on July /, 1889 (as 1t
will unless Congress acts to extend
the date).
Undersupply on Homes.
8. Undersupply of single family
dwellings in "a per cent of cities,
despite the revival of home building
and despite the appreciable new
doubling up of families which ac-
companied business recession.
4. Substantial activity in the mar
ket for homesites, evidence of prepa-
ration of family after family for
new home building Measurable
upswing here, despite the recession
in general business activity which
began in the last months of 1887,
is symptomatic of the underlying
strength of the real estate outlook.
Other cardinal points as to todays
situation follow:
Market activity higher than last
year at this time in 80 per cent OF
the cities reporting, and abreast with
the rate which opened last year in
80 per cent of the cities. (The like
survey of six months ago found
only per cent of cities more active
and IA per cent less active than
they had been a 12-month earlier.
That was in comparison with the
post-depression peak activity reached
for real estate in May, 1879
Selling prices steady in 64 per
cent of the cities. Up median OF
10 per cent in about one-eighth of
the cities. Still affected by the re-
cession in almost quarter OF the
cities. Where they are down the
median drop is 10 per cent. prices
for residential property are forecast
to rise during 1889 in SIS per cent of
the cities reporting. Rise expected
is ordinarily about Is per cent?
Rents Stable.
Rents in the most stable stu
alton of the post-depression> period.
Capital for mortgage loans seek
ing investment in II per cent of the
cities; loans seeking capital in only
13 per cent of the cities. This ia
vorable situation is even more gen.
eral than at the May, 1887, peak.
Interest rates in % per cent of
the cities lower than last year at
this time, when they were already
the lowest in history. In SO per cent
of cities, steady at last years level.
Rising in only 2 per cent of the
cities.
Market for subdivision or suburban
lots improved over last year at this
time in one-third of the cities re-
porting decline is shown in only
one-sixth of the cities)
Vacant lots sold for home sites
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