Evening star., 1950-08-31
Swan1ped
BY Loan Pleas
To Buy Homes
Firm Contract Prices
Still Being Offered in
Wur-Scure Market
By Robert J. Lewis

War-scare home buying swamped
District Veterans Administration
officials with a record-breaking
wave Of loan applications this
it was learned today.
Indications were that nom
veteran sales were high, also,
though the number of FILA appli-
cations fell OFF from 400 in July
to 308 this month.
One title insurance company
reported its August business in
Maryland suburbs jumped 100 per
cent above the level for the cor
esponding month last year. But
ellis firms business in the District
for the month was about the same
as in 1949.
Morgan B. Callahan, loan guar
anty officer of VAS Washington
regional Office. said 1,410 applica-
tions for loan guarantees were
received this month.
This was about 500 more than
we ever had in a single month
before" Mr.. Callahan said. Last
months total of $50 was an abb
normally high number, he added.
Demand TJnabated.
A check of brokers and builders
indicated demand for houses is
continuing unabated in the Dis
trict area.
Some builders are holding the
price line unchanged. and selling
freely, but others have discon-
tinued, for the time being, at least.
the current practice of selling
orders" for houses to be COM
pleted later at a fixed price.
These builders say they want
to see what happens to costs be-
fore tying on definite price tag.
Observers point out that some
of these builders are sincerely con-
cerned that they be not caught
in a rising market, while others,
with building supplies already in
hand. want to find out whether
the market will tolerate a price
rise owing to increased demand.
Both VA and FILA spokesmen
said they had not heard of any
authenticated case in which a
speculative builder had refused
to honor a contract to build.
Reports that some builders were
"stalling" in the hope that buyers
would relinquish their contracts
were discounted by a VA spokes-
man.
Heard for Years.
We've been hearing reports Of
this kind of thing from many
buyers for five years, but it's hard
to prove" VA spokesman said.
A spokesman for the Home
Builders Association of Metropol-
itan Washington said he had not
heard any such reports.
I'm my opinion, any builder
with a buyers name on contract
is going to want to produce the
house and make his profit" the
spokesman said.
A number of speculative build
erS, this spokesman said, are max
ing provisions in contracts they
enter into, permitting a somewhat
higher price to be charged in case
rising costs justify it. The num-
Der of these contracts is said to
be small, however.
As for contractors who under
take to build on a custom basis
and not on speculation, they con-
tinue to offer firm contract prices
as before.
A check on a number of these
firms disclosed that while many
already have as many jobs under
way as they care to handle at
the moment, there is no indica.
tion that they look forward to a
return of the "cost plus" con-
tract.
One firm which has about So
100000 in residential contract
work still unfinished said it is
hesitant about taking any more
jobs at the present time until it
had a chance to see what was
happening to material prices and
material supply.
Will Accept High-Price Jobs.
This firm said it particularly
didn't want to accept any more
contracts for m edium-p price
houses for the present, but had
recently accepted. and would con-
tinue to accept a number in the
$4,000 to 100000 field.
A spokesman said that be-
tween July IS and August Is, 1t
had turned down the opportunity
70 enter into about a dozen firm
contracts because 1t already was
engaged in a large amount of work
and wanted to wait until the ma
,erials situation had clarified.
This firm, observers pointed out.
1ad reasons for not accepting ad-
11tional work which would not
necessarily affect other firms.
From its course, therefore, no con-
as to general trends could
De drawn.
One of the city's best-known
contract builders who is entering
nto firm contracts, as usual, said
ne is mot as much concerned now
rs was at first" over the pos
'lble effect Of the Korean war on
aome building.
Broker Reports Terrific Sales.
One broker said he had a ter
'ific" sales month which he at
'ributed to war-inspired buying.
II sold everything I have and
low I can't seem to get anything
n sell ho Soid HDooy,Ia eo1,,. L.