A Daily Shot of News

The Portland real estate market, the largest component of the Oregon housing market, saw an increase in median price but a decrease in the number of units sold. It is unclear what the effect of the federal tax credit on these two benchmarks has been, although the market is likely to slow in upcoming months. A July 28, 2010 report from the Portland Business Journal stated that “The Portland housing market received a final bump in May from the expired federal home buyers tax credit. Home prices in the Portland metropolitan area were up 1.2 percent in May over April and .7 percent year-over-year, according to the Standard & Poor’s Case-Shiller Index, a measure of single-family home prices in U.S. cities. Seattle home prices in May were up 1.7 percent month-over-month and off 1.4 percent from a year ago. Nationwide, home prices in the 20-city index rose 1.3 percent from April to May and 4.6 percent from May 2009. The May increases can be attributed to the strong seasonal period for home sales and residual impact from the home buyers tax credit worth up to $8,000. The credit expired April 30 but applied to homes that closed by June 20…The Case-Shiller Index measures long-term home price appreciation with a January 2000 value of 100. Portland has an index of 147.98 and Seattle has an index of 146.82. The national 20-city index is 146.43.”

The number of Portland homes for sale which have actually been purchased decreased in the most recent tracking period. According to a July 27, 2010 report from KGW News, “Just when we thought the real estate market was making a comeback in the last few months there’s a new reality check. In Oregon we’ve taken a step back, while across the country sales have improved a bit. It once again speaks to how Oregon lags when it comes to the recession recovery…According to the Metro RMLS, in June the average sale price dropped 3.3 percent and the median home price dropped $9,000 to $240,000. After the success of the $8,000 dollar tax credit and a surge of sales in April and May, once the incentives went away, so did sales.”

The Yen Influences Real Estate in Hawaii

Hawaii is considered one of the best places that Japanese travel to, this is because nearly half of the population is comprised of Asians. In fact, in regard to the traveling of visitors, the Asian demographic makes up a huge chunk of those that visit the area. Because of this, the Yen has a huge role in boosting the economy because of tourism.

Because of the value of the Yen, those Japanese investors find that they can get incredible returns on Honolulu properties. In fact, with the exchange rate, they can purchase homes for much less than many other peopled. Because the dollar value is low, when it does make a comeback, those that have purchased under the power of the Yen, will find that they will have even more profit if they resell the home when the value of the dollar increases.

The current situation with the Yen is a prime example of buying low and selling high. Right now is the prime time for Japanese investors to take part of the Hawaiian economy, simply because the value of the Yen is high and the government has not intervened yet.