Year: 1875

The condition OF affairs in the real estate market Mt
he present time presents much food for reflection
The part of those interested in that field OF investment
For the past two years more the principal
business has been sales under foreclosure or
in anticipation of foreclosure proceedings, at which
prices have been made wholly irrelevant to the actual
status of values but calculated by their presentment
give mistaken impression. These sales have been
both of houses and lots at figures which adjoining
property would scout the sale in the instances
referred to being forced because of accruing mort
gage upon a market where the mortgage was per-
haps and in most really the only bidder 1t need
scarcely be said that prices made at such sales have


QuoTABLE STANDING.


1t is worth while to notice. however, that the present
dulness amounting almost to stagnation, prevailing in
real estate has direct reference to this multiplication of
foreclosure sales They have been the feature of the
market for over two years crowdng the desks in the
Exchange Salesroom that, if there had been other
influence operating retard free offerings the pressure
10 sell exhibited in these foreclosure suits would have
been sufficient to interrupt all speculative business Nor
have we reached the end oft present indications point
10 even larger liquidation of that sort this fall especially
in Brooklyn. There is something to be considered
however this These foreclosure sales have
gained undue prominence this year and last from the
absence OF other offerings; hence, while there has
been undoubtedly a very decided increase in that
direction it has not after ALL taking the worst exhibit
been greatly in excess of what might be regarded as


OF DEFAULTS


in active condition of the market The increase in
this record has como principally from the class OF in
vestmcnts which mado about 1867 and the years
following. when shoddy capital seeking
placing. These flush times in the New York real
estate market There n Big Bonanza in every
vacant lot north and west of Central Park The Boulc
ward lode running through the richest deposits of
ntroconvcrtble ore. The popular instinct at the time
in regard to uptown property that ''thcre's mil
lions t' And everybody went in. The conse
quence logical, viz high prices, which were
further stimulated, where stimulation not
iary but the contrary the ultra conservative
instinct was required to regulate purchases) by the
liberal offers of sxy to seventy five per cent may
main on mortgage" Hundreds went in on these terms
men, too, of moderate capital who held for years
in spite of the obsructonst policy of Green following
closely upon the expansion policy of Tweed-which
latter by the way helped and contributed to the excite
ment above referred to-and might have hold to the
present time if the panic had not inervened. 1t is
mistake say the panic did reach real estate 1t
did reach it, and seriously too, but


REAL ESTATE VALUES WERE SUBSTANTIALLY





to drift into the condition railroad values The
shrnkage in the of the latter and of all values of
personal character, which of the immediate
suits OF the panic reacted in this market by nhbiting
holders of these heavily mortgagcd parcels obtaining
the relief necessary to meet taxes assessments and
other charges with improvements stopped) hence in
majority of with these purchasers of III 72 and
73 the property had to take OF itself The result
of course, foreclosure and with forced sale upon
dull market price very little reflective of the real
value of the property disposed of In most instances,
said before, offerings Of this kind have been
bought in by the MORTGAGE; in fact 1t has almost be-
come one of the conditions of the market that such
should be the There offerings outside OF these
forced ones no one who is able to hold property show
ing the least disposition to sell Thus, with this steady
wipng out of weak holders through foreclosure pro-
cccdngs and the return of much of the property
thus brought into liquidation to its original owners
have condition the market. All the indications
that when the revival in this market comes
como il must and WILL certain centennial periods
or other recurring excitcmcns real estate here will be
found TO be more firmly held than it three
years ago. That is the weak men, who might be salts
fed with small advance, will have been wholly elimi
mated from the market and the real estate likely to be-
the subject of speculative activity have passed
into the hands of men wholly Indifferent to fluctuations
In values.


MUCH OF NEW YORK REALTY


already held by such 1--WE speak of improved property
rcry little of which into the market, ex-
ept under an executors order Thus IT IS that medium
priced houses, first class in every respect, show
deterioration whatever in value and can command to
day the price two years ago, but mansions, "
highly frcscoed, with panoramas in the parors bowling
and billiard rooms in the basement and gymnasium
in the attic, are at present n drug


INQUIRY MONEY


real estate is active but is of such character to
very seriously limit response Parties who have to





renewal but want further sum to meet unpaid taxes
and assessments while lenders ndisposed TO lend
even the amount OF n former mortgage, looking to
lower valuation This helps the foreclosure business.
Il is worth while to note however, that


TWENTY THIRD AND TWENTY FOURTH WARDS,
md very large portion of the Twelfth ward where prop
rty escaped recognition during the speculative period
referred above free OF the embarrassment of
inflated values This class Of property may be said to
have not yet obtained aIr presentation in the city
market, and is held and offered figures which give
every assurance OF a sharp advance when fresh move
ment in this market develops ITSELF when rapid transit
has reached near fact as the choice of scheme by
the present commission. Taking the city below the
district pointed out IL Is estimated that


THE SHRINkAGE IN REAL ESTATE VALUES IN TWO YEARS
has been average thirty per cent Ofcoursc in
special localities the of particular parcels forced
into the market transfers show much greater falling
OF, reaching even fifty per cent, while in excep-
uonal' cases where the property was sought for
special uses there was even an advance IL is the same
to-day person seeking, say residence Fifth ave
nue., other fashionable street. has bid IT, while
holder, dcsrous dispose of the same must meet the
market.


INTERESTING REGARD TO DOWNTOWN


PROPERTY


Is the removal Of the Post Occ now in progress 10 the
building IN the Park. This settles permanently the
Tauc of all surrounding property which has been sub
Get heretofore TO fluctuations consequent upon tho
transition condition that followed the removal of the
Wholesale and obbng dry goods business further up
industries that seek Office room in this great CONNER
cial centre. Office room Is now demand all tho
adjacent to the new Post Office building which
thus becomes IL the heart OF the city proper
vcgardcd from business standpoint