SLO Sales Tax
The City of San Luis Obispo’s sales tax revenue in the first quarter of 2012 – January through March 2012 – was up by 9.2% compared with the same quarter last year. This follows an 11.7% increase last quarter. This is the eighth consecutive quarter of recovery following 11 quarters of decline but still below the peak in 2006-07.
The city’s sales tax newsletter adds that by area in town- Los Osos Valley Rd was up 1.8%, south Higuera was down 6.6%,Madonna Rd down 4.6% but Downtown was up 12.5%. By category the report says auto sales, fuel and restaurants – up 20%- all were higher. Lumber and building materials seemed to come to life – up 40%.
The report compares the City of SLO with the county and state. Taxable sales countywide were up 14.25% while the state was up 8.4%.
Nationwide,retailers are reporting strong back to school sales through August despite escalating worries about the slow pace of economic recovery.
SLO Real Estate Market..New Day?
Real estate agent,Collette Kutil of Paterson Realty wrote the following in August in her blog, reflecting a new optimism in the marketplace.
“Last year I worked with a few frustrated sellers, their homes would hang out on the market for a while and receive low ball offers. Plus, buyers would nitpick the properties apart and ask for a ton of concessions. The agents (myself) would communicate and assure our sellers that we’re doing our best to promote and sell their homes for the best price. Contrast that with today’s market, sellers are receiving multiples offers with in hours of the property going live on the Multiple Listing Service – MLS. As an example, today my client toured a home in Arroyo Grande that has been on the market for 2 days. This home was previously listed last year for 9 months with no sale. Today I called the listing agent and was informed that there are already four offers….hurry…. if I want my offer to be reviewed. I know this house well, I showed it last year multiple times to clients that didn’t want to pay the asking price of $299K. Today the property is listed for $40K more and the seller is going to get their price. I hope my client gets a chance for consideration with our offer, including consideration on the forthcoming multiple counter offer. Like I said, it’s a new market!!!”
Mortgage Rates Stay Low
Aug. 30, 2012,Freddie Mac released the results of its Primary Mortgage Market Survey® , showing fixed mortgage rates pulling back and following bond yields lower after gradually moving higher over the past month.
30-year fixed-rate mortgage (FRM) averaged 3.59 percent with an average 0.6 point for the week ending August 30, 2012, down from last week when it averaged 3.66 percent. Last year at this time, the 30-year FRM averaged 4.22 percent.
More Labor Day Travelers
Labor Day travel in Southern California is expected to increase by 3.4 percent over last year, with 2.35 million Southland residents projected to take trips over the holiday weekend, according to the Automobile Club of Southern California.
More than 1.85 million Southern Californians are expected to drive to their destinations, an increase of 3.6 percent over the 1.79 million who traveled by car last year. Many will head to the Central Coast where good weather is expected.
The number of Southland travelers by plane is expected to increase by 4.1 percent to 306,000, compared to 294,000 last year. The number of travelers by all other modes – including bus, train, RV and cruise ship – is expected to stay about the same as last year at 190,000.
“Travel interest and bookings have seen improvement compared with 2011,” said Filomena Andre, the Auto Club’s vice president for travel products and services. “Although gas prices are expected to be higher this holiday weekend than during other Labor Day weekends, we anticipate this to have very little impact on holiday travel, because most people have planned their trips and made reservations before the dramatic rise in gas prices. And fuel costs typically represent a fairly small percentage of the overall trip budget.”
Statewide, 3.79 million travelers are expected to get away this holiday weekend – a 3.4 percent increase over last year’s 3.66 million. Of those, 2.99 million will drive, which is a 3.6 percent increase from last year, and 492,000 will fly, which is a 4.1 percent increase. About 306,000 are expected to go by other modes of travel.
LA/U.S.Tourism
In related news, the LA Tourism and Convention Board said last week that July tourism set a record with 83.9% of hotel rooms occupied in July,a 25 year record.This is the seventh straight month of a rebound from the 2011 downturn.
Also, the U.S. hotel industry experienced positive results in the three key performance metrics during the week of 12-18 August 2012, according to data from Smith Travel.
In year-over-year comparisons, occupancy ended the week with a 3.6-percent increase to 69.6 percent, average daily rate was up 4.4 percent to US$106.58 and revenue per available room ended the week with an increase of 8.1 percent to US$74.21.
Among the Top 25 Markets, St. Louis, Missouri-Illinois, reported the largest occupancy increase, rising 12.5 percent to 66.3 percent. Houston, Texas, followed with an 11.0-percent increase to 64.1 percent. Boston, Massachusetts, fell 2.9 percent in occupancy to 81.8 percent, posting the largest decrease in that metric.
Three markets experienced double-digit ADR gains for the week: Oahu Island, Hawaii (+17.8 percent to US$207.82); San Francisco/San Mateo, California (+11.2 percent to US$171.80); and San Diego, California (+10.1 percent to US$145.03).