Las Vegas New Home Sales Hit 30-Year Low

Just a few short years ago Las Vegas had one of the hottest housing markets in the United States. In the world even! But in 2011 it's home-building industry was one of the coldest, falling to a 30-year low. New home sales topped out at just under 3,900 -- a fraction of the 2005 number of nearly 39,000.

According to Dennis Smith, president of Home Builders Research Inc:

“2011 was the most difficult year the [Las Vegas] home building industry has ever been through."

He said it was the worst he's seen since he started tracking the Vegas market in 1987. In fact, it only barely beat the 1982 new homes figure of 3600. Maybe the scariest thing is that the Las Vegas Valley now has about 4 times more people than it did in '82.

The Vegas economy continues to be mired in high unemployment and huge number of "underwater" mortgages/foreclosures. The only bright spot is that Las Vegas houses have become incredibly cheap to buy! Many economists expect the Vegas economy to pick up slight in 2012 and continue to gain momentum into 2013 but there will almost certainly be no rapid, dramatic recovery for Sin City!

We say: Vegas needs jobs. That's all there is to it. Until our "brilliant" local business leaders and politicians figure out a way to bring new industries and decent-paying jobs into this city not much is going to change.

Learn some mo': Las Vegas new home sales hit 30-year low in 2011

Very Low Interest Rates / Cheap Loans Until 2013 Boosts Stock Market

The US Federal Reserve announced today that Americans can enjoy at least 2 more years of low interest rates -- and, most likely, the cheap loans that come from them. Fed representatives said it would keep interest rates close to zero until at least mid-2013, guaranteed.

The move was an unprecedented one, designed to stop the crazy drops in stock values seen over the past 2 weeks. And it worked: Wall Street rallied within hours of the announcement and the Dow finished up nearly 430 points for the day, landing at 11,240 at the closing bell.

Most believe that promising to keep rates low shows that the Fed expects the US (and probably world) economy to remain weak for much longer than previously thought. Fundamental problems in Europe and the US have demonstrated very clearly that the Great Recession may not have totally ended at all.

We say: This is good news if you're trying to get a home loan, car loan, or pretty much any other loan. Credit will remain cheap for awhile, despite the recent downgrading of US debt. Now the trick is to find a job and/or other way to earn money so you can actually buy big-ticket items again... something that is much easier said than done right now!

Learn some mo': Stocks Soar After Fed Pledges Low Rates Into '13

Another Worldwide Recession May Be Starting

The US stock market took a huge dip on Thursday -- with the biggest 1-day drop since the 2008 crash -- and now the rest of the world's markets are following closely behind. Stock markets in London, Germany, France, Japan, China, and Hong Kong are all taking huge percentage hits.

The crazy thing is that almost every type of investment is dropping, even so-called "safe harbor" stuff like precious metals. Many experts believe that the US -- and probably the entire world -- is entering into a new recession in 2011. Some even claim that the US has already been in a recession since May!

The big question now is what will happen to European and US markets in the next few days. If the sell offs continue many financial experts say governments may have to take some type of emergency response to keep the global economy from diving headfirst into a depression.

Here's the good news: oil prices are dropping like a rock. Looks like it may be time to take your savings out of the bank, head to Vegas (please!), and let it all ride on the roulette table!

Learn some mo': World stock prices plunge amid 'general fear' of a new US recession, European debts

US Is In the Weakest "Recovery" Ever

The current US job market is unlike anything economists have ever seen and it's scaring the crap out of people. At this point in an economic "recovery" employers are supposed to be adding jobs and hiring new people. That is simply not happening, at all. In fact, only 18,000 jobs were added in June, a fraction of the 300,000+ jobs needed to begin shrinking the US unemployment problem.

The really spooky thing is that economists don't really understand what's going on. Just a few months ago most experts believed the US economy would be heating up significantly by the second half of 2011. The opposite seems to be happening an nobody really knows why.

According the the current statistics, over 16% of Americans who want to work are either unemployed or under-employed (working part-time jobs for example). A big problem is that employers are still very reluctant to begin hiring in big numbers the way they did before the Great Recession that began in 2008. They prefer to make current employees work harder and longer. As a result, both worker productivity and US corporate profits are through the roof!

Many companies, including small business owners, don't want to begin hiring again until they're sure American consumers are going to be spending on products and services. Also, new technology and computer software is allowing managers to get more work out of fewer employees.

The fact that the politicians in Washington DC are playing "chicken" with the US debt ceiling definitely isn't helping the situation. The US economy would almost surely head back into a deep recession if the world believes there's even a chance America could default on its huge debts. Europe's debt problems and China's inflation-fighting programs are also causing employers to adopt a "wait and see" hiring strategy.

Learn some mo': Analysis: Flat jobs data signal weakest recovery in decades

US Economy Slowing Down AGAIN!

The United States economy appears to be headed toward more trouble, according to new reports. Economic growth, job creation, and consumer confidence are all down once again, despite the many billions of dollars the US government has pumped into the economy over the past 2 years.

Politicians and investors are hoping it's only a temporary "speed bump" but some experts are saying we're headed for another big recession. According to economist Paul Ashworth:

"It is now pretty clear that the economy ran into a brick wall [in April, 2011]... The extent of this slowdown is becoming a big concern."

The news is pretty much bad across all sectors of the American economy. In fact, only 54,000 new jobs were created last month, way fewer than were expected. The bad news shows that the economy may not be building up the momentum the country needs to pull itself out of one of the worst recessions in history... and that we may be heading toward a dreaded "double dip" recession.

Many things are hurting US consumers and workers right now. Gasoline prices are way up, boosting the prices of just about everything. Huge floods and tornadoes have shut down businesses all over the South. A shortage of vital parts from Japan -- due to the earthquake, tsunami, and nuclear meltdowns that occurred there -- has hurt auto and other forms of manufacturing.

Here at home in Las Vegas the high gasoline prices are definitely affecting tourism negatively. On top of that, job growth in tourism, hospitality, leisure, and retail has basically ground to a halt. Not good news for a city that is definitely still in the doldrums of the recession.

Still, some economists and experts believe that it's only a matter of time before growth picks up again. Already gasoline prices are beginning to cool off a little, mainly because demand is dropping. Japanese parts suppliers are ramping up production much faster than suggested. Small businesses are being launched at a very brisk pace and will, hopefully, begin hiring people in large numbers again in coming months.

We say: Unless the politicians in Washington DC figure out how to stop fighting over non-vital issues and actually fix some major problems facing our economy, the US is screwed. The Democrats, despite their giant stimulus, don't seem to know what to do but the Republicans seem to not even care about fixing things. They have yet to present one "jobs" bill in Congress since taking over in January!

Learn some mo': Slow-moving economy runs into 'brick wall'

Las Vegas Classic Sahara Closes

The Sahara Hotel and Casino shut down operations today, marking the death of a "classic" Las Vegas Strip property and the end of an era. The owners of the once-popular resort, a group called SBE Entertainment, say that they simply couldn't bring in enough business to keep the doors open.

Locals and gaming experts alike blame the global economic recession as well as the fact that the Sahara is located on the down-in-the-dumps northern end of the Strip. Some point the blame at the current owners, saying that poor strategy and bad management basically ran the place into the ground in recent years.

One thing is for sure: the Sahara was, at one point, one of the classic "Rat Pack" casinos and was frequented by everyone from Elvis to the Beatles to Frank Sinatra. In the last decade or so it's become known as the place to find dollar blackjack games, cheap drinks, a really short roller coaster, and ultra-cheap hotel rooms that are occasionally invested with bed bugs.

Things had definitely gone down hill.

Still, the old joint had its charms with Moroccan-themed decor and a 1950's Hollywood-style pool. It also had a good group of employees who lots of tourists knew on a first-name basis going back to the 60's. Many long-time Vegas visitors and locals -- including us -- will miss the place... just like we miss the Dunes, Sands, Stardust, and all the other Vegas classics we've seen disappear in recent years.

We say: Las Vegas casinos are some of the most profitable businesses in the world. The Sahara, as far as we know, had no significant debt problem. There's something seriously wrong when you can't get a place like that to crank out at least a small profit!

Learn some mo': Sahara hotel-casino closing on Vegas Strip

The Sahara Hotel Casino is Closing!

The legendary Sahara hotel on the Las Vegas Strip will be closing on May 16th, according to its owner. According to SBE Entertainment Group CEO Sam Nazarian:

"the continued operation of the aging Sahara was no longer economically viable..."

The Sahara is an iconic Vegas casino, opened in 1952, on the northern end of the Strip. It was a favorite of Frank Sinatra and the Rat Pack in the 60's and was one of the most popular Las Vegas resorts for decades. But it hasn't had a major upgrade in years and the huge jump in Vegas hotel room count (currently 149,177, thanks to the CityCenter and Cosmopolitan openings) has really hurt it financially.

The bottom line is that the Sahara stopped really being a competitive property and even its super cheap room deals weren't enough to bring people in and turn a profit. Many gaming and tourism experts believe that more ageing Vegas properties will be closing within the next few years as the city struggles to recover from the local and global recession. Two neighbors of the Sahara -- the Stratosphere and the Riviera -- are probably the most likely to get closed down in the near future.

We think that the closing of a major Las Vegas Strip casino, with no concrete plans to renovate and/or re-open in the future, is extremely worrying to say the least. It could lead to several other closures, especially near the Strips' north end. Speaking of that, the city needs to figure out a way to revitalize pretty much the entire Strip area between Sahara Ave and Wyoming Ave. Making it safe for tourists and Vegas locals to walk around in would be a start!

Learn some mo': Sahara’s closure on May 16 will mark ‘the end of an era’

Las Vegas: Now One of World's WORST Economies!

Here's more "great" news about our home town of Las Vegas, Nevada: it's just been ranked as one of the worst economies in the world. Not worst in the United States... worst in the WORLD! A fresh report from the Brookings Institution and London School of Economics shows that the Las Vegas area is 4th from the bottom of 150 major metropolitan areas worldwide in terms of economic performance.

Here's the worst part: before the global recession began in 2007 Las Vegas was ranked in the top 15 cities for best economic performance. In gambling that's called a swing... a really big, ugly swing. Experts say that the chances of the city pulling itself out of this horrible economic slump anytime soon are very poor, mainly because of Vegas's dependence on tourism and the (currently dormant) construction industry as well as its ugly housing market.

According to Alan Berube of the Brookings Metropolitan Policy Program:

“If the first year (of recovery) is any indication for Las Vegas, it could be a long, slow road ahead with the overhang from a damaged real estate market... It was globally one of the fastest growing regions leading up to the recession and sort of the Dublin of the Rocky Mountain West... It was mentioned up there with some of the Eastern European cities that were highfliers up until the crash because they found themselves heavily overinvested in real estate. They had a significant portion of their economies in construction and real estate finance, and the jobs went poof when the housing bubble burst worldwide... The economy that Las Vegas had before the recession is not a recipe for growth in the new economy. There has been talk about the need to diversify and find new sources of economic growth, and that is imperative in the long run.”

Many experts believe that, in order to save itself from years of stagnating economic growth, Las Vegas must diversify its economy, improve education, and figure out how to attract even larger numbers of foreign tourists. The city also must find a way to attract more gamblers who spend more money in order to bring real growth back to the local economy.

Learn some mo': Las Vegas economy among worst in the world, report says

Las Vegas: The Last Big City With Falling Home Prices

The Las Vegas area remains the last "big city" with falling home values, according to a new report from Standard & Poor's. The incredibly high unemployment levels combined with home foreclosures and a big slowdown in tourism is simply killing the city's economy.

Every one of the other 20 big US cities has seen its home prices increase or, in two cases, remain even. So despite some bright spots Las Vegas continues to lag behind the rest of the country. A second "double dip" recession has become a major concern in Southern Nevada.

The Greater Las Vegas Association of Realtors reports that the median price of a single-family house in Southern Nevada is around $135,000... half of what is was just a couple of years ago!

According to one expert:

"The worry starts when you remember that the Homebuyers' Tax Credit has expired, foreclosures are still at high levels and July data on home sales and starts were very, very weak. The inventory of unsold homes and months' supply data were particularly troubling. If this relative weakness in demand continues, it will likely filter through to home prices in coming months."

Learn some mo': 20-city index shows Las Vegas alone in home price decline

Las Vegas: Broke Baby Boomers, Retirees a Big Problem

Las Vegas Strip casinos are continue to struggle, even Steve Wynn's properties. And retirees and baby boomers don't appear to be helping as much as expected, according to recent statistics. Gaming revenue dropped 14 percent in May 2010 compared to the previous May.

Most gamblers are 50 or over and have more time and money to spend in casinos than younger people. But many of them have lost huge portions of their retirement savings, meaning that they have far less money to gamble and spend in Vegas casinos. What's worse, many retirees have large amounts of money tied up in homes that are worth far less than before the recession began so Las Vegas trips are not a possibility.

The bottom line is that baby boomers and retired Americans no longer have access to easy cash like they did in the 90's and most of the 2000's. Declining home values have made them feel less secure financially than ever before. Experts believe that they won't be returning to Las Vegas in large numbers until we see a major increase in home values, the biggest factor in most retirees' wealth.

Learn some mo': Retirees, with nest eggs crushed, can’t muster Strip rebound

US Stimulus Benefits Nearly Over

The huge $787 billion US stimulus program that was launched in 2009 is peaking without providing the big jumpstarts needed in the job market and overall economy. The Obama administration's "Summer of Recovery" will see thousands of temporary jobs created due to large highway improvement, water, and home weatherization projects, not to mention those thousands of "census" jobs.

But after that, it's all downhill for the stimulus-based recovery. And unfortunately the US economy will almost definitely still be in serious trouble. Some global economic and financial experts say that the stimulus has provided very little if any significant long-term benefits.

The only hope for a real recovery is that private companies will see profit levels increase and will therefore begin to hire Americans in large numbers once again. Until then, the United States and the world as a whole will continue to sputter along with little real economic growth.

Learn some mo': Stimulus: The big bang is over

Nevada Now Has Highest Unemployment Rate

The state of Nevada now boasts the highest unemployment rate in the US, finally beating out Michigan and it's dying manufacturing industries. Statistically, the official number is 14% unemployment. Unofficially, the "real" unemployment rate is probably much higher in Nevada and especially in the Las Vegas area.

There are about 190,000 Nevada residents without jobs, according to state figures. Yet the true figure is much, much larger due to the large number of Nevadans who have stopped filing for unemployment benefits.

The economy in Southern Nevada is probably the worst in the entire country and has yet to experience any of the recovery taking parts in most of the rest of the United States. It's kind of ironic since not too long ago Las Vegas boasted the fastest-growing economy, job market, and population of all major US cities.

Nevada's jobless rate has skyrocketed since the Great Recession began in 2007, jumping nearly 9 percentage points. With an economy that's nearly completely based around gaming, hospitality, and construction -- 3 of the worst-hit industries -- it's obvious the Nevada is going to have to take some big steps toward diversifying itself in order to create new jobs.

Learn some mo': Nevada leads the nation in unemployment

US Economy Finally Picking Up Everywhere

The entire United States economy appears to be picking up for the first time since the start of the Great Recession in 2008, according to the Federal Reserve. They say that modest and fragile economic growth is taking place in just about every corner of the country.

The Fed's yearly survey that measures national economic activity showed that things are improving in every part of the country for the first time since 2007. Manufacturing is up as well as retail sales, both important factors in terms of getting the US back on track financially.

Experts till warn that the pace of the growth in most of the country is still extremely slow. Worse, companies won't begin hiring because of the modest growth, meaning that the lack of jobs will continue for the foreseeable future.

Learn some mo': Fed sees economy picking up all across U.S.

Experts Predict Long Road Out of Recession

US economics experts are predicting a long, slow road out of the Great Recession that began in 2008. Even as some parts of the United States are beginning to claw their way out of the hole, the nation as a whole is still in some of the worst financial doldrums in its history. People are still out of work or only partially employed, consumers are still buying less, and banks are still hesitant to lend money on a large scale. Still, the stock market has begun to fight its way back out of the dark hole it was in at the beginning of the year and corporate profits appear to be strengthening significantly. Experts believe that this recovery will be similar to the one that took place in the early 1980s. Long, slow, painful... but no total collapse/doomsday scenario!

Read some mo': Lessons from ‘80s don’t bode well for economy

Tags: Great Recession