Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 28, no. 70 [i.e. 703]: September 3, 1881

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Real Estate Record AND BUILDERS' GUIDE. Vol. XXVIII. NEW YORK, SATURDAY, SEPTEMBER 3. 1881. No. 70 Published Weekly by The Real Estate Record Association TERMS: O^E TEAR, in advance ...... $6.00 Communications should be addressed to C. W. SAYEET, 13T Broadway. J. T. LINDSEY, Business Manager. THE SITUATION. Are we likely to have a strong market for real estate this fall? This is the question now agitating the minds of real estate dealers and investors. Business is generally very good. In all branches of trade mer¬ chants are making profits and workmen are receiving better wages than since the inflated times of '70 and '71. New York is filling np with people, and, so far, the new houses built have commanded a ready sale. The buying through the summt-r has been 'con¬ fident, and there is a well-grounded belief that some time during this fall there will bi a siiong, if not an excited, real estate mar¬ ket. But how will the stock market affect real estate? The various factors which advance the price of railway securities also have their influence upon real estate. If WaU street should take a gloomy view of things, we could not expect a very active real estate speculation. It is quite certain that last spring there was a very excited stock mar¬ ket and a rather quiet real estate market. But according to the experience of the past, it is after a great stock speculation culmin¬ ates that prices of realty show a decided ad¬ vance. All legitimate businesses are profitable just now. The country never had so much money; but stock speculation is no longer attracti%-e, and the chances now are that the surplus money will overflow into otiier channels than that made by the Stock Exchange. A week ago it looked for a time as if there might be a renewal of the bull movement in stocks. The probable death of the Presi¬ dent had been fully discounted; so had the partial failure of the cr.»ps. Gold was com¬ ing from Europe, our exports were increas¬ ing, and then it was natural to expect a reaction after a long period of depression. So on Saturday, Monday and Tuesday stocks went up at a pretty rapid pace; but the stiffening of the rates for money began to excite apprehension, and on Wednesday morning stocks sold off again. Yet, if we are to import gold from Europe, the price of money must advance at this side of the Atlantic. No gold would find its way here if the price of money is only three per cent. There are still several things which may operate in favor of the market. The gene¬ ral business activity of the country is swel¬ ling railway receipts, which, in some instances, makes up for the crop deficiencies. Europe must have our breadstuffs, no mat¬ er what their price, and then there are powerful monetaiy influences which have new enterprises on foot that will help to sustain the market. The outlook would seem to be, therefore, in favor of a broker's market; no very great rise and no very marked depression, and this ought to help the real estate market. If the surplus money of the country cannot be used in stock speculation, it will seek more perma¬ nent investment, and hence the probability of heavy purcbaseo of real estate by persons who, if the stock market was active and ad¬ vancing, would be dealing in railway securities. A SPLENDID SCHEME. President Corbin, of the Long Island road, has made public the details of a magnificent scheme for populating and enriching Long Island. He has organized The Land, Mort¬ gage, Investment & Agency Company in England, with a capital of £1,000,000, divided into 100,000 shares of £10 each. Among the directors are the names of noblemen and leading English bankers. It is propo.sed to build splendid summer hotels and cottages on the eligible sites on the north and south shore of Long Island, and to give such in¬ ducements to immigrants that all the vacant lands in the centre of the island will be cut up into farms for market gardening pur- po.ses. Of course, the key to the situation, will be the stock of the Long Island Rail¬ road. While wishing every success to Mr. Corbin in his endeavor to get English capital to improve Long Island, conservative real estate owners will be disposed to criticise the scheme. Long Island is beautiful and healthful, and contains many picturesque sites for hotels and villages. But is not the summer hotel business being overdone? At the rate at which they are now building on the sea-coast, it will require about half the population of the United States to keep them full during the summer time. Tiien, as to the market gardening part of the schemes, is it not true that since steam ves¬ sels have been in use, growers of early vegetables along the South Atlantic coast have had the advantage of tne Long Isljind tarmers ? The high priced early fruit and garden stuff is monopolized by the Southern growers. President Corbin has veiy much improved the Long Island road, and the stock has advanced from 16 to 48. The road will soon be taken out of the hands of the receiver. Nothing can prevent the growth of Long Island, and the increase in the price of its realty, and this addition of English capital wiU be an excellent thing in itself, even if the investors are disappointed at the difference between the promises and the performances of the new company. Judged by the exchanges^ the United States was never so prosperous. The ex¬ changes in New York for August, 1880, were $3,399,761,848; for August, 1881, $3,555,804,- 054,.an increase of 48.3 per cent. Making allowance for the stock dealings there is a gain of fully 57 per cent, over the August of last year in this city alone. This shows that the rate cutting was stimulating the busi¬ ness of our city; but there is every reason to believe that the trade of tlit» metropolis will continue exceptionally good for the rest of the season. Nor is New York alone in this business activity. During the j last week the increase in New Orleans is 91 per cent., in Milwaukee 83 per cent., in Kansas City 73 per cent., in Louisville 63 per cent., and in Boston and Memphis over 50 per cent. These differences are somewhat accounted for by the increased price of commodities dealt in, forthe cheap era has passed away. Hereaf¬ ter labor, land and all commodities w ill be dearer. Railway securities were swollen in price at the expense of every other interest in the country during the past three years; but now the time has come when the price of stocks is decreasing, and of everything else increasing. INCREASED COST OF LIVING IN NEW YORK. Living in New Y<»rk is again becoming costly. Rents have advanced, and there is no reasonable pr'ispect of lower figures for f^everal years to come in desirable locations. There is every reason to believe that money invested iu improved property will command a better return during the next ten than it lias during the past ten years. Then^ New York is a more desirable city to live in than it was. Its public grounds and drives are unsurpassed. Its theatres and places of amusement are calculated to suit every taste, and soon it will have an opera house as fine as any in the world. The New York market is better supplied, and contains a greater variety of choice food than any city of mod* em times. No market in Europe has such a variety of fruit, and as for choice game, our caterers have at their disposal birds and ani" mals from the equator to the Arctic circle. We are far behind the capitals of Europe in pictures and statuary, but treasures of that kind are constantly accumulating in our public and private galleries. But what we started out to say was that living in New York is growing more costly. Labor of all kinds is higher-priced; domestic service has to be better paid. Then, owing to the short crops and the prevailing drought, food and vegetables of all kinds have ad¬ vanced in price. Peaches, usually so abun¬ dant at this time of the year, are scjirce and dear. The apple crop is deficient, but peais are in rather better supply than usual. There will be a general advance in prices this fall. Boarders in hotels and private houses, as well as lodgers, may take it for granted that they will be asked to pay more, or be contented with less. It is not impossible but that this inevitable increase in the cost of livitig may force people with fixed incomes over to Brooklyn or to the other suburbs of New York. We "can spare I them, for the addition to our population ii constant and shows no signs of abatement. k Notwithstanding the increased cost of lit-