By Edward Snow
Managing Editor, Astrology News Service
Is the freefall in home prices finally over?
Citing a cyclical trend in home values that has been tracked since the American Civil War between the states, astrologer Grace K. Morris, M.A., says the worst almost certainly is behind us.
According to the 18.6-year Real Estate Values Cycle first described by the late research astrologer Alice Reichard, home values were projected to bottom in August 2009 and trend upwards toward the next high point in June 2020.
“There’s been a lot of sideways movement in America’s housing markets as the number of home foreclosures has continued to rise,” Morris said. “But things appear to be getting back on track after the subprime mortgage crisis plunged the housing industry into chaos.”
Morris writes and publishes the Astro Economics Stock Market Newsletter. She said the Real Estate Values cycle is keyed to the motion of the moon’s north and south nodes.
The mathematically calculated nodes are sensitive points in space where the moon’s orbit around the Earth intersects the Earth’s orbit around the sun — the ecliptic. The north, or ascending, node is where the moon’s orbit crosses north of the ecliptic, and the descending, or south, node is where it crosses the ecliptic to the south.
Eclipses can only happen when the moon is aligned with its nodes. This phenomena was observed and noted at least 2,600 years ago by the ancient Chaldeans, who called these two points the Dragon’s Head (north node) and Dragon’s Tail (south node).
Every astrological tradition since then has identified the nodes as powerfully influencing both the affairs of nations and the lives of ordinary people.
Like everything else in space, the nodes are continually on the move, progressing together in tandem but 180 degrees apart in opposite astrological signs. During the 18.6-year cycle, each node spends more than a year trekking through each of the 12 astrological signs.
Reichard theorized that the transiting Dragon’s Head (north node) might positively influence home values as it transited through the astrological sign of Cancer. Symbolically, Cancer deals with feelings and the emotions, but also is strongly linked to domesticity and matters related to hearth and home.
Reichard further reasoned that if home values cyclically peak with the north node in Cancer, they should bottom about 9.3 years later when the north node had moved halfway around the zodiac to the sign of Capricorn.
How is this working out?
The cyclical pattern is highly susceptible to economic nuance and may sometimes appear to be flat or uneven. However, over time, the trend line has consistently moved in the expected direction, Morris said.
In the current era, home values peaked in 1962 with the north node in Cancer and the average U.S. home price climbing to $20,000. Values remained virtually unchanged as the cycle trended downward to the next cyclical low point in 1973, but average prices rebounded robustly to $80,000 by the time the cyclical high point was reached again in 1981.
Home values dipped to another low point in 1991 when, on cue, a recession arrived to moderate earlier gains. Only this time, when the trend line pointed north, there was no stopping the rapidly ramping home prices that arrived with the new century.
“Home values were projected to peak in 2000, but subprime mortgages fueled and extended an incredible surge in home values for another six years before the housing market began to implode,” Morris said.
The good news is the Real Estate Values trend line appeared to be back on track in August 2009. The north node was back in Capricorn, and home values had abruptly returned to their cyclical lows in many U.S. housing markets.
“The timing could hardly be more auspicious for those who can consider buying a house at this time,” Morris said. “Interest rates are near historic lows, and home values are at a low point as well.
“A home purchased now should prove to be an excellent long-term investment,” she said.
From the March 14-20, 2012, issue