@tlrtgftndrg @reetfngs hunpY fl-en Desr

Orbein Lumber Compony

Eglablighed

, Pcscdenq, SYccrmore 6-4373 rerepnonea: Los Angeles, RYcn l-Gggz

WHOLESALE and RETAIL

Hcnbor Ycrd qt Long Beoch

Lenders More Cautious

(Continued from Page 46)

Another factor which has caused more conservative thinking about real estate lending, was the tremendous amount being invested in the purchase of real estate, as compared to total expenditures and income. In tos Angeles County, in the year \940, real estate sales totaled an amount equal to approximately 34/o of total retail sales other than real estate. By 1946, this had risen so that it was equivalent to 8l/o. fn comparing total real estate sales with total income ,payments in Los Angeles County, we find that in 1940 the percentage .r.as 2l/o and by 1946 had risen to 47/o.

There has been a recent tendency, however, toward a reduction of real estate sales. Thus, for the first nine months of this year, the percentage as compared with retail sales has dropped, to 49%, and as compared to total income payments, has dropped. to 3l%. The actual number of transfers of property is also decreasing.

Thus, real estate lenders are faced with conditions which are changing quite rapidly. The ability of a speculative builder to sell promptly any house which could be completed has lessened. It requires more study and care as to location, total cost, and the amount of down payment required. There is not as much cash in the hands of the buyer for down payment and there has been a definite buyer resistance developing against the high prices of houses. Builders have recognized the problem, and in many instances are attempting to meet it by exerting every possible effort to reduce the price of a new home. All over the United States, programs of economy houses are being developed.

There has been no cessation of lending upon real estate, but there is dehnitely a feeling of more conservatism developing. Those who still have funds available for real estate lending are more reticent because of the indications of a possible reversal of trend. Institutions which lend the money of others must be acutely conscious of these trends. The problem is greatly aggravated by unsettled conditions, not only in the economic field but in the political world as well. The trend of individual incomes, and thus purchasing power, is dependent upon future political developments, the amount expended in rearming, and the possibility of war. It is quite probable that loans upon real estate will be more difficult to obtain until conditions become more settled, and the probable future trend is more clearly outlined.

New Oregon Plyurood Plant

Southern Oregon Plywood, Inc., has started the construction of a big new plywood plant at Grants Pass, Oregon, and will have it in operation in about six months. It will make two to three million feet of plywood monthly.

Olfice Moved to Loomis

The office of The Grass Valley ufacturers and wholesalers. has Valley, Calif. to Loomis, Calif. Box 395, Loomis. G. M. Wales

Lumber Company, manbeen moved from Grass Mailing address is P.O. is in charge of sales.