The Feng Shui of Real Estate Cycles!

By: Kathryn Holt of Feng Shui Resource, Lisa Vomero Inouye

and Zoraya de la Bastida of ZBEST TEAM, Keller Williams Realty

 

 

For those of you who follow Eastern Philosophy, you may already know that 2010 represents the Year of the Tiger. What you may not realize is that one of the Tiger’s most notable characteristics is quick, unpredictable movement, and wild change! Can you recall any of those occurrences as you reflect on the past year? We certainly can!

 

Change is typically experienced in one of two forms:

 

1.) Quick and unpredictable (“Yang”), or

2.) Change that occurs slowly and subtly over time (“Yin”).

 

To better understand the dynamic of “Yin and Yang” and how it influences the changes you experience in life, as well as your everyday mood, take a moment to reflect if you will, on the natural cycle of the seasons which in most parts of the world also influence the real estate market both in pricing and sales volume. For example, in nature a period of stillness, Winter (Yin), gives way to rebirth and growth (Spring). The energy associated with Spring gains increasing momentum and eventually peaks during Summer (Yang), much like the real estate market in terms of both inventory and pricing. Upon reaching its fullest potential, energy begins to fluctuate and eventually starts the slow descent downwards (Fall), eventually returning to the stage of stillness (Winter).

This dynamic holds true for everything in life, from relatively small cycles of our daily 24-hour sleep – wake cycles, to the larger, more expansive cycles of the real estate market. Instinctively, we know this; however, intellectually and emotionally we sometimes forget. There is great comfort in knowing that everything is cyclical; therefore, subject to highs and lows and in the current real estate market cycle very low, lows which offset the very high, double digit appreciation we experienced in the late 1990’s to the early 2000’s! Understanding and accepting these cyclical patterns helps make the seemingly unpredictable, more predictable and easier to accept.

It is also beneficial to remember that, for better or worse, every stage of the cycle is temporary! Of course, some stages just feel longer than others, like now! There are people who panic at the first sign of change and, in doing so, they can disrupt the natural order of things and inadvertently prolong the very thing that brings them discomfort. “Yang” resistance would be trying to force things to happen at an inauspicious (unfavorable) time, and “Yin” resistance would be non-action, feeling immobilized or choosing to be in denial, which in unfortunately where roughly 40 percent of the real estate market, represented by “short sellers” are currently finding themselves. To navigate most successfully during these times, it is ideal to embrace change and learn to adapt. This approach also enables us to discover seen and, often, unseen opportunities that are contained within that specific window-of-time.

To further illustrate the cyclical nature of Feng Shui in the real estate market let’s look back over the past few years. You notice a pattern of growth in 2003 - 2004 (Spring), which peaked in 2005 - 2006 (Summer); it started to fluctuate during 2007 - 2008 (Fall), and began its gradual descent towards “stillness” in 2009 - 2010 (Winter). The end of 2010 represents a time of fluctuation again which, many Feng Shui experts believe, will lead to the re-emergence and growth of the real estate industry, beginning in early 2011, the Year of the Silver Hare! In closing, the Year of the Hare (or “Rabbit”) is projected as a calmer, more peaceful year. A year of welcomed positive change – may the New Year find you filled with prosperity and abundance!