Between the first quarter of 2009 and the fourth quarter of 2017, the Median Price of Houses Sold in the United States (MSPUS) rose by more than 62%. A similar rise in real estate prices occurred in many other countries, especially in Canada, Australia, New Zealand, and China. Real estate prices reached astronomical levels in the most desirable areas, such as Vancouver, New York, San Francisco, Seattle, Portland, San Diego, London, Wellington, Sidney, Melbourne, Shanghai, Singapore, Hong Kong, Beijing and Moscow, to mention just a few. Then, in 2017 real estate prices began to decline in some areas, and already in the first half of 2018, MSPUS has lost 6.5% of its value. Was it just a temporary phenomenon caused by rising interest rates? Will real estate prices continue their triumphant march in 2019 and beyond, or will there be another real estate market collapse like the one that occurred in 2006-09?
A General Economic Slowdown
Historically, real estate prices follow general economic trends. They rise during economic expansions and decline during economic contractions. As discussed in U.S. Economy in 2019, an economic contraction in 2019-20 is practically inevitable. Therefore, we may conclude that real estate prices in the U.S. and the rest of the world will continue declining in 2019.
Enter Pluto
In the astrological chart of the United States, asteroid Chiron is located in the 4th House of Real Estate. From January through July 2018, the U.S. Chiron was under the stressful influence of Pluto transiting through the 2nd House of Money in the U.S. chart. This transit coincided with the 6.5% decline in the MSPUS. Pluto formed a square to the U.S. Chiron once again from November 2018 through January 2019 causing another decline in real estate prices.
Pluto will form this square one more time from August through November of 2019. Will this transit of Pluto cause a further decline in real estate prices, or was the previous decline just a coincidence? Let’s examine what happened to the MSPUS during the previous stressful aspect of Pluto to Chiron in the U.S. chart.
Chiron under Attack
From 1963 until 2000, real estate prices were rising almost constantly. There were only four periods during which this rise was interrupted by declines. Two of them occurred when Pluto formed stressful aspects to Chiron in the U.S. chart.
In 1979-80, Pluto formed three squares to the U.S. Chiron. The square in October-November 1979 coincided with a 3.2% decline in the MSPUS. However, during such Pluto’s squares to the U.S. Chiron in March-May and in August-September of 1980, Neptune was forming a trine to the U.S. Chiron. Under the influence of this harmonious aspect from Neptune, MSPUS actually went up in 1980.
In 1997-98, Pluto was forming three exact semi-squares to the U.S. Chiron. In January-April 1997, this transit coincided with a 1.1% decline in MSPUS in the 2nd and 3rd quarters of the same year. The semi-square in November-December 1997 coincided with 2.7% fall in the MSPUS in the 1st quarter of the next year. The semi-square in July-September 1998 failed to force real the estate prices into a decline. However, its influence interrupted the MSPUS rise for one quarter.
Saturn Comes into the Fray
In addition to the stressful influence of Pluto, Chiron in the U.S. chart will also receive a stressful square from transiting Saturn. In April-May and December of 2019, Saturn will form a conjunction to Pluto while also forming a square to the U.S. Chiron. Historically, the influence of Saturn on the U.S. real estate prices is fairly weak. In conjunction with Pluto however, Saturn will produce a noticeable downward pressure on the U.S. real estate market.
Among other things, Pluto stands for death, while Saturn is associated with restrictions and fiscal discipline. Both of these planets are transiting through the U.S. House of Money while afflicting Chiron from the U.S. House of Real Estate. The astrological interpretation of the above is obvious: a decline in the Median Price of Houses Sold in the United States in 2019.
Conclusion
In 2017-18, the decline of real estate prices in the U.S. was caused by Uranus/Neptune semi-square and Pluto’s square to the U.S. Chiron. The same planetary influences will be in effect in 2019. However, additional downward pressure on the real estate market will come from Saturn. Therefore, the median real state prices in the U.S. will continue declining in 2019, and this decline will be greater than in 2018. Fortunately for homeowners, it will be only a 8-10% decline, rather than 50% collapse observed in 2006-09, prior and during the Great Recession.
