Milford chronicle., 1955-04-08

the size Of down payments and ex-
tended the maturity on FILA insur-
ed mortgages, with the result that
this type Of loan has increased in
popularity in most parts Of the
district Terms on conventional
mortgages, too, are somewhat more
lenient than in the early spring of
last year. Down payments have
not changed significantly, but in
terest rates have sOftened a little,
chiefly on mortgages in which the
borrowers equity ranges upward
from 40 per cent. And savings and
loan associations have libeFalized
their terms to permit a down pay
ment Of 25 per cent on mortgages
running for 25 years. On VAS the
no-dOwn-payment feature repre-
sents a decided easing in terms. But
lately there has been considerably
more insistence. on at least a 5 per
cent equity, particularly on those
mortgages that run for the 30-year
maximum
Builders Plans Reflect
Considerable Optimism
Most builders appear to recog-
nize the increasingly competitive
nature of the market in which they
operate. Nevertheless, their exper-
fence in selling houses soon after
completion has continued encOur-
aging. Home builders in virtually
all price ranges express about the
same high degree Of confidence
they maintained through 1854. On
this basis, it seems likely that 1855
housing starts may approximate
the level reached last year. In
the vicinity of the larger cities Of
this district, improved land is be-
coming scarce and prices are ad-
vancing rapidly. This situation
could necessitate some shift from
the lower to the medium-price
ranges, although builders in nearly
all sections tell us there remains
a strong demand for houses sell
ing from $4,000 to $4,000.
In this price range, a consider
able volume of construction is
planned for 1865 in suburban sec
tiOns near Philadelphia and in the
vicinity Of Trenton, New Jersey.
Around Reading and in the Allen
town Bethlehem area of Pennsyl-
vania, activity is expected to be
heaviest in houses selling from
$13,50O to about $4,000. In suburb
an Wilmington, New Castle, and
Newark in Delaware, more build
eTs may be operating in the med
ium- to higher-price ranges this
year than last
Adequate Financing Is
Available To Builders
Thus far builders have not ex-
perienced difficulty in arranging for
either temporary or permanent fl
naneing on projects scheduled for
1865. Construction loans general
ly are available on much the same
terms as prevailed last year, and
commitments for mortgages on op-
erations already under way ap-
pear to present no problems. Ad-
vance commitments covering fu-
ture construction are said to be a
little more difficult to arrange, and
builders seem to feel that some
further tightening may be expected
later this year. But this situation
appears to vary with the locality.
There still are a few areas in this
district where lenders continue to
encourage builders to apply for
loans on projects not yet started.
Demand For Existing
Houses Holds Up
Both builders and real estate
brokers tell US the market for old
houses is holding up surprisingly
well in most sections. Buyer pref
erences lean more strongly toward
suburban offerings. But there are
not so many of these to choose
from, so most city row houses sell
fairly promptly. Prices of existing
hOuses have continued to soften in
the past year and further mOder-
ate decreases appear probable. The
number of old houses on the mar
ket has been increasing slowly,
/ Builders are watching this situa-
tion closely. Thus far competition
with new construction has not
Preached noteworthy proportions
rand builders have not expressed
serious concern over the situation