29 Acres in the Heart of Joplin

Though Joplin has plenty of vacant land in the middle of town, it is hard to find a large tract of land right in the heart of our town.  That is until now.

On the SW corner of Junge and Maiden Lane sits 29 acres.  This property was the previous home of Moore Manufacturing, a company that made concrete culverts.  But now it is for sale.

The possibilities for this piece of land are endless.  It has the least restrictive zoning so any industry could go in there. It is bordered by city maintained roads. It is also close to shopping and is right next to a residential neighborhood, so it would also be a prime spot for a residential project.

If you have a project that needs plenty of space, this is the piece of land for you. Check this out on my website or give me a call.

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March Sales Activity and Absorption Rate for Joplin

It is time again to look at the numbers and calculate the absorption rate. Remember the absorption rate tells us how long it would take to run out of our local house inventory if no more houses were to be listed. 

Let’s get started.

Currently, there are 1064 homes for sale. In March 143 homes sold.

To figure absorption rate:

# of listings available 1064

# of listings sold in the last month X 12

143 X 12 = 1716

Divide this # by 52 wks.

1716/ 52 = 33

At this rate 33 units are selling each week.

Divide the # of listings available by that number to get the absorption rate.

1716/33=52

Looks like it would take 52 weeks to run out of houses.

Many analysts will tell you that you can get a better idea of the market for your home by calculating the absorption rate in your price range rather than the overall market.

You can use the information in the chart below or give me a call. I will gladly help you figure your absorption rate.

 

 

February Sales Activity Report & Absorption Rate

So who doesn’t love to look at our numbers to calculate the absorption rate?

Starting with December, we had an absorption rate of 36 weeks.  That means that last December if no more homes were listed, it would have taken 36 weeks till we ran out of houses to sell.  That jumped to 58 weeks in January.

So let’s find the absorption rate for month of February.

Currently, there are 1079 homes for sale. In February, 113 homes sold.

To figure absorption rate:

# of listings available 1079

# of listings sold in the last month X 12

113 X 12 = 1356

Divide this # by 52 wks.

1356/ 52 = 26.07

At this rate 26.07 units are selling each week.

Divide the # of listings available by that number to get the absorption rate.

1079/26.07=41.38

Looks like it would take 41.38 weeks to run out of houses.

Many analysts will tell you that you can get a better idea of the market for your home by calculating the absorption rate in your price range rather than the overall market.

You can use the information in the chart below or give me a call. I will gladly help you figure your absorption rate.

January 2012 Absorption Rate

Last month when the Sales Activity Report came out, I used those figures to find our market’s weekly absorption rate. (See December 2011 Sales) Remember that this is the rate that homes will be sold in a given area.  In other words, it tells us the number of weeks it takes to sell the current inventory at the present rate of sales.

I calculated that in December, it would take 36 weeks to sell the total inventory of homes available.

 

Let’s look at January’s absorption rate. Currently, there are 1074 homes for sale.  In January, 80 homes sold.

  

To figure absorption rate :

# listings available                                                                                                                    1074

# listing sold in the last month X 12                                                                         80 X 12 = 960

Divide this # by 52 wks                                                                                              960 / 52 = 18.46

At this rate 18.46 units are selling each week

Divide that number by the # of listing available

to get the absorption rate                                                                                    1074 / 18.46 = 58

Last month our figures showed it would take 36 weeks to have our entire inventory sold and now this month it has jumped to 58 weeks.  This is not surprising for this time of year.

Many analysts will tell you that you can get a better idea of the market for your home by calculating the absorption rate in your price range rather than the overall market.

You can use the information in the chart below or give me a call.   I will gladly help you figure your absorption rate.

Source is the Ozark Gateway Association of Realtors

Are You Earning Good Money in Your Savings?

I just talked to someone at Southwest Missouri Bank, a fine bank here in Joplin.  I was told that you can earn 2/10 of a percent on your passbook savings account.  Of course SMB has many more types of saving plans, but my question to is: Are you earning good money in your saving account right now?

If you are not pleased with what you are earning at a bank, you may want to diversify your savings and try to earn a bit more money.

Have you looked lately at the price of renting a home?

Here is a sample of ads I pasted off Craigslist in Joplin:

Jan 31 – $690 / 3br – Single Family – Joplin, MO – (Joplin, MO) pic

Jan 31 – $1325 / 3br – 1800ft² – NEW CUSTOM DUPLEX IN LOMA LINDA – (JOPLIN)

Jan 31 – $655 / 3br – Very large 3 floor home. – (joplin) pic

Jan 31 – $625 / 1br – 510ft² – LOMA LINDA ALL BILLS PAID – (JOPLIN)

Jan 31 – $625 / 1br – 500ft² – ALL BILLS PAID ONE BEDROOM IN LOMA LINDA – (JOPLIN)

Jan 31 – $425 2 Bedroom Apartment for Rent- Close to downtown Joplin –

Does that monthly income look good to you?

Right now in Joplin, rental property is a hot commodity.  There are several reasons for this.

Although there are some fantastic loan programs out there, if your credit is not good, it is difficult to qualify for a mortgage. There are many people who for whatever reason just do not have the credit score to qualify for a mortgage.

Many of the homes lost in the tornado where rentals.  From apartments to rental homes, a great deal of rentals that were here a year ago are no longer available.  People need places to rent.

Lots of people that I talk to are a bit weary of being landlords.  Too many of us remember the old Michael Keaton movie, Pacific Heights, a nightmare movie for landlords for sure.  But there are many landlords who are quite satisfied with their tenants.  For those of you who are a bit timid, be sure to contact the Southwest Missouri Rental Association for great tips and advice.

If you have ever tinkered with the idea of purchasing a home to rent but are a bit hesitant, let me help you out.  At our Keller Williams office, we have lots of ways to assist the investment buyer.  Give me a call to see if this is the investment opportunity that would be right for you.