Attached is the fourth quarter Grand Strand Economic Report which is prepared in a joint effort from SiteTech Systems and CCU’s Wall College of Business Center for Economic & Community Development.
During the fourth quarter, the Grand Strand economy continued to improve, although we have yet to see significant gains in employment and income. The unemployment rate continues to fall, almost entirely due to unemployed individuals leaving the labor force. Healthcare and higher education are leading growth in employment, but these gains have not yet been strong enough to offset the losses in other sectors. The strong retirement demographic continues to stabilize demand in both the tourism and residential construction sectors. Nationally, the economy weakened in the fourth quarter of 2012 as GDP declined 0.1 percent. Fiscal uncertainty associated with the budget debate as well as the expiration of the 2 percentage point reduction in the payroll tax will weigh on investor and consumer confidence in the first half of 2013.
Tourism has experienced growth compared to the 4th quarter of 2011. The Grand Strand witnessed increases in occupancy rate, ADR, and RevPar. The hospitality related taxes and fees decreased in the 4th quarter due to the unusually high amount of collections in the previous year. This is partly due to SC DOR’s legal decision to collect taxes back as far as 10 years on VRBO properties and recording the fees in the period they are collected and not when they are accrued.
Real estate continues to improve in the 4th quarter as the number of SFR and condo/townhome sales increase and excess inventory is decreasing. The median sales prices for condo/townhomes are flat from 2011, seeing a substantial increase in sales with virtually no price appreciation. The SFR median sales has decreased almost 3% from that of 2011. Sales prices will increase as the distressed properties continue to be pushed through the inventory. SFR building permits have increased almost 70% as well-located subdivisions continue to attract buyers and builders.
Read the entire report at:
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