Milford chronicle., 1958-08-22

OraDle terms mas become more
readily available In this area of
the housing market about the only
evidence of sickness is to be
found in some of the older neigh
borhoods where coming regulations
have been relaxed, and in the case
of large dwellings offered at above
market prices. Reasonably prompt
sales of old houses are taken as a
healthy sign. A quick sale on an
existing property many times
speeds up settlement on a new one
The supply of nns0ld houses has
diminished
Few builders carried a signifl-
cant number of completed houses
over the winter. They became
market after mid-1957 and sched-
uled new projects accordingly !;
however, in poor early spring
selling season even a small inven-
tory seemed to occasion some con-
Germ. These carry-overs have since
disappeared and no local builders
report an overhang of any conse-
quence in today's improved market
Vacancy rates continue low I'm
rental properties
The number of houses offered
for rent has not been large at any
time in the recent past. Those that
appeared on the spring market
seem to have been taken up quick
ly Much the same situation is true
of small apartments and duplexes.
The trend of rents still is rising in
metropolitan areas of this District.
In the opinion of many realtors,
the narrow selection offered ip
houses for rent and the continuing
slow climb in rentals contribute in
no small way to the sales demand
for houses both new and old. With
the help of better financing, more
people seem to find that it suits
their budgets to buy rather than
pay high rents prevailing in the
more desirable locations.
Construction costs have not
changed significantly
In our area, as in most other
parts of the country, construction
costs reached new peak levels last
year. Prices of several building
materials, notably lumber, declined
late last fall and through the win
ter months. In some cases, how
ever, the spring and summer of
1858 saw mild reversal of trends
that brought material prices back
close to their 1857 peaks. Steel
prices, for example, were raised in
early August. Current forecasts for
the "big three"-lumber, cement,
and steel-suggest that a further
slow rise may be expected in the
months ahead.
Labor costs locally have risen
less this year than last. In some
instances, long-term contracts me-
gotiated in the spring of 1857 call
ed for only moderate advances in
subsequent years. And in others,
The fact that so many construction
workers were laid off or were on
short time last fall and winter
seems to have discouraged pressure
Tor wage advances now that more
employment opportunities are open
ing in the home-building field.
What about builders plans?
Although homebuilders in this
area have become more optimistic
lately, their projects are geared
closely to the current market for
houses. This means that operations
still are on a conservative scale
compared with 1866 and earlier
postwar years when the apparent
need for new dwellings was con-
siderably greater than at present.
1t is a healthy situation overall,
and our builders say they want to
keep it that way.
In line with the moderate i'm
provement experienced in recent
weeks. some builders plans have.
been reactivated in whole or in
part. There were projects tempor-
arily sheIved. when the demand for
houses fell off and both construc-
tion loans and permanent financ-
ing were so difficult to arrange.
This is a welcome and apparently
fully warranted change of pace.
But it does not forecast any rapid
expansion or a shift to more
speculative type of home building
for the fall market. There are
signs that in the weeks ahead more
ground will be acquired and de-
velopment started-but only if the
expected demand from home buyers