Year of The Dragon, Good For Real Estate?

The Year of the Dragon officially began yesterday. This sign is associated with prosperity, will this be a good omen for home prices? Historically, this is a good year – at least the last three times it came around. Just look at the statistics from state and national Realtor associations. Home prices were up considerably the last three Years of the Dragon — 1976, 1988 and 2000. And sales were up on a state and national basis in two of those three years. If past history is any guide, the new lunar year could be when the housing recovery really gets under way.

– In 1976, the median price of a single-family U.S. home was up almost 8%, while in California, it jumped nearly 17%.

– Sales that year were up at least by 23% both statewide and nationally.

– In 1988, prices were up a more modest 4.3% nationally, while California’s price shot up 18%. It’s also the first year that the California Association of Realtors had figures for Orange County. How were prices locally that year? Up 25%!

– Sales likewise was booming on the state and local level in 1988, rising 10% statewide and up 8% in O.C.

– In 2000, prices were up on national, state and local levels, with California and O.C. home prices up 11% and nearly 13%, respectively.

– Sales that year were down in the U.S. and in California. But in Orange County, home sales increased 2.2%..
Will the Year of the Dragon be good for real estate? Let’s hear your comments.