Evening star., 1940-01-13
Realty Prices Up
In 23Per Cent
Of u. ). Cities
Semi-AnnuuI Survey
Notes Stability
Of Rents

Real estate prices are higher than
a year ago in % per cent of the
cities in the United States.
In number of cities, the under
supply of dwellings has increased
despite the stride of new home
building.
Rents are stable, but the trend
is predominantly upward, and mort
gage interest rates are still falling.
Those are findings released today
in the 34th semi-annual survey
made of Americas real estate
market by the National Association
of Real Estate Boards.
The figures were based on con-
fidential reports from real estate
boards of 261 cities.
Pointing out that real estate
prices have risen in almost one
city out of every four, the N. A. R.
E. B. said the rise amounts to 10
per cent as median.
Market Activity Gains.
Market activity is greater, it was
cdlhs AL ~ pCl SCllU VI JIlC ClClcS
surveyed than it was a year ago.
The association cited some ele-
ments, which, it said, if taken to-
gether indicate healthy base for
real estate commitments. They in
cluded:
Prices are at least on the level of
q year ago in 81 per cent of the cities
they have fallen in only 13 per cent
of the cities (although it should be
noted that the drop, where it oc-
CURED, like the price rises where
they occurred had a median of 10
per cent?. Market activity is at
least as high as last year in 90 per
cent of the reporting cities.
Shortage of single-family dwell
ings is more prevalent than at any
time since new home building got
into stride. 1t is reported in As per
cent of the cities, as against "a per
cent year ago, and only per cent
now show oversupply. In So per
cent there is normal supply.
Rents of all kinds show a high
degree of stability. What move
ment there has been in the past u
months is predominantly upward,
and the outlook is for this situation
to continue.
Interest Rates Decline.
Interest rates, for the first time
IN real estate history in this coun-
try, have smashed below the old
6 per cent rate as the commonest
rate for first mortgages on new,
moderately priced homes. They are
at the lowest level and are the
most nearly uniform, geographical
1y, that the country has ever known.
And they are still falling in al per
cent of the reporting cities. are ris-
ing in only 3 per cent of the cities,
while money supply for real estate
financing remains adequate or in
excess of available loans in 90 per
cent of the cities.
Better demand has stiffened rents
for downtown business space in %
per cent of the cities. but oversup-
ply in business buildings is still COM
moner than shortage.
The largest cities are the ones
most frequently showing higher
prices and advance in market VOL
ume, with 81 per cent of them on
the up side as to sales volume and
80 per cent showing advance in
prices, while only II per cent show
decline in either prices or volume.
Regionally. better selling prices
than last year are most frequently
reported in New England (by 80 per
cent of the cities, in the South
east (by 80 per cent?, in the South
Central region (by 81 per cent?.
Percentage showing increased prices
in other regions: Northwest, % per
cent; Great Lakes, 81 per cent; Gen.
%ee PRICES paoe R3)