As you probably have read, the nation's economy has taken a down turn and Las Vegas is no different. However, in recent days, good news has been appearing in various publications and on the airwaves.
For instance, an article in In Business Las Vegas (July 28th issue), quotes:
"Keith Schwer, the director of UNLV's Center for Business and Economic Research, (UNLV CBER), calls it the first recession to hit all aspects of the local economy since the 1980s. He maintains it's not likely to recover until the second half of 2009 at the earliest when new resorts will provide a boost."
The good news is:
Schwer is projecting; "Gaming revenue will increase 4.7 percent in 2009, and visitor volume will increase 2.7 percent."
In a recent poll taken by the UNLV CBER, 42.9% of the people expect to "see a meaningful recovery in the Southern Nevada housing market" during the second half of 2009.
On August 27, 2008, an article in the Las Vegas Review Journal reported that :
"American felt better about the economy in August, as a barometer of sentiment posted the biggest boost in two years amid falling gasoline prices. Two reports suggested that a bottom could be nearing for the housing market"
On August 28, 2008 Reuters News Agency reported:
"Strong exports and consumer spending supported by government stimulus checks drove the U.S. economy up at a solid 3.3 per cent annual rate in the second quarter, much faster than first thought, but growth is expected to flag as those factors fade.
The U.S. Commerce Department Thursday said consumer spending and net exports were more vigorous than initially estimated and that inventories fell less sharply. A month ago, it said U.S. gross domestic product had expanded at a 1.9 per cent rate in the quarter.
The upward revision was much sharper than analysts had expected and added to evidence the U.S. economy may skirt the downturn many had forecast as a result of a deep decline in housing markets, tight credit and high energy and food prices."
We realize that it will take time for the nation's economy to fully bounce back. However, those of us who have lived more than five decades realize that the time to take advantage of a market is when it is "down" so that you can enjoy the upward ride.
Despite rising fuel and materials costs, contractor's bids in Southern Nevada over the past three months have come in nearly 30% below estimated costs due to the need to keep equipment and personnel working. With the slowdown in building permits and construction, NOW IS THE TIME to take advantage of both a quicker turn around and lower development costs.
No matter how fast the economy starts to climb, one thing will hold true in the development process; civil improvement plans still require the longest lead time of any project design item. We are seeing only a slight reduction from the usual 12 month schedule to about ten months, due to the reduced staff at the public entities. What that means to you, the developer, is that in order to break ground in the third quarter of 2009, you must start planning and designing today.
We at Nevada By Design are optimistic about our Nation's resilience and the fact that 2009 will be the beginning turn around year for the economy. Now is the time to call us; we would like to be a part of your design team.