The Wilmington morning star., 1945-03-23
PROPERTY BOOM
REPORTED NEAR
~ ROGER BABsON

pa real estate boom appears in
70 rmaakirg,-in fact, it has been
the all ~ for some time in certain
gol aions Therefore, a few rules
see. ' we'll be remembered. In a
may ors1 article like this I should
selle Comment upon farm lands as
NOV t;on soil and Improvements
losa r 60 much with different pro-
narbaps the simplest and surest
~ to make money in real es-
way way is to select growing, we'll
,t a.e city with diversified indus
~ as and surrounded by good soil.
W., w. mid-western cities, which
mv' situated on a navigable lake
az liver, fulfill such requirements.
u Alter selecting your city ascer-
,oin the best residential street
l ls.l out from the center Of the
l si4v Go out that street in the right
~. ltroction for a few miles until you
annoento vacant land. Then stop
.ud inquire the price. So long as
DIV s.,a nrice is quoted per front FOOT
a sre ner square foot" go along fur
~ .ssr until someone quotes you e
u uri per acre.. Everything else
pe;na equal, buy at this location.
Althoueh real estate prices in
nanv sections have risen consld-
arshIv there is now no sign-ex-
e.a+ in inflated areas - Of a
t trrn downward. In fact, now
taresee no general decline for a
few years. =,
Nm the other hand, one should
INV much more carefully now. For
Instance. a few years ago almost
INV property, relatively well locat-
n could be purchased for specu-
1,tion with reasonable certainty
that the transaction would return
nrotit. Now that is no longer
true This is well borne out by
notins that the rate Of transfers
has slowed up. .
Certain areas will experience
sharp drops in values when war
contracts expire and transition I'M
employment occus. A marked
cessation of employment or redis-
tribution of industry and people in
some sections could spell drastic
local deflation, postwar.
Construction activity in other To-
calities will increase sharply aftec
ending of the European phase OF
the war. The WPB has made prep
arations Tor a speedy resumption
Of new building, once men and
materials are. available. The con-
struciion industry has always been
one of the mainsprings of full en-
ployment and prosperity. An adj
ministration searching so avidly
for economic health will not over
look the job-creating possibilities
Of a building boom.
Residential houses property-ur-
ban, suburban and rural - has
staged the most spectacular price
advance during the war. Office and
factory property has also moved
up, but not to the same degree.
City retail store space and land
suitable for subdivision In subur-
ban areas has moved Up the least.
However, after peace, the reverse
may happen.
On the basis Of the economic
prospects for different sections Of
the country. I feel that the best
areas Will be in the Southeast. Far
Vest and Southwest. Prospects ap-
near only fair in the Middle East,
Central States and Northwest. The
least favorable section from the
standpoint of future prospects Is
the New England States.
Factory rehabilitation will be
extensive but relatively few new
factory units will be needed. The
general outlook for retail proper
ty is favorable because of the ex-
peeted ups ing in consumer
gooos. Suburban land for subdivi-
sion will increase most in value.
Although there is much talk
about local manpower shortages,
yet the severance problem will be-
come paramount as 1945 moves
along. This is destined to have
an important bearing on the de-
mand for real estate. In the last
analysis, real estate prices fluctu-
ate with payrolls, profits. COM
modify prices and the stock mar
ket.
--V-
In 1900, IL per cent Of the U. S.