Are you searching for a new property to add to your investment portfolio? Provo, Utah, is a great place to start. Located about 45 miles south of Salt Lake City, Provo sits beside the picturesque Utah Lake.
The area is also known as Provo-Orem. Orem is a smaller city that abuts Provo's northwestern border. Many local real estate professionals consider the entire Provo-Orem area to be one market.
Want to know the latest real estate news from Provo-Orem? Find out why now is a great time to invest in Provo-Orem real estate in this guide.
Provo-Orem Average Home Prices
The median home price in Provo-Orem is currently $352,881, which is lower than the national average. However, it is higher than the price of the average home in 2021 and 2020: $313,935 and $315,530, respectively. Experts expect the average home to go for $426,615 by 2028, a nearly 21% increase and over $100,000 in profits.
With home prices rising steadily, now is the time to invest in the market. In May, 47% of homes on the market reduced their prices, the highest share in more than a year, signaling a temporary pause in price hikes.
Now is also a smart to buy if you plan to rent out your investment property. The average renter pays around $1,300 per month right now, meaning your tenants will pay off the investment in around 20 years.
Provo-Orem Home Stock
If you want to buy a property in Provo, you better act fast. Provo-Orem homes typically sell within days of listing. This phenomenon has to do with the tight supply of homes for sale and for rent.
The market may be competitive, but buyers are backing out of it in droves right now, thanks to rising mortgage rates and inflation. You may face less competition for that Provo-Orem investment property you've been eying.
Additionally, many sellers are looking to offload their homes as soon as possible. Realtors are advising them about the price reductions and demand cool-off, leading owners to accept offers they probably wouldn't usually.
Other Reasons to Consider Buying
Provo's rising home and rental rates and temporary buyer's market are not the only reasons you should consider adding a new Provo-Orem property to your portfolio. The area is also attractive for its local economy.
The average Provo-Orem renter earns $6,521, meaning they only spend about 20% of their income on rent. Provo is a high-income area, in general, due to the burgeoning tech industry and established institutions like Brigham-Young University.
Provo's tech industry, in particular, may be responsible for the recent rise in home prices and rental rates. The area has experienced a recent influx of professionals working in the industry, a trend with no end in sight.
Stay Up to Date With Provo-Orem Real Estate News
Real estate values and rents are rising in Provo-Orem, Utah. Now is the perfect time to invest since the real estate market has temporarily cooled off.
Need help staying up to date with Provo-Orem real estate news? PMI Made Simple is a full-service property firm providing consulting and management to real estate investors like you.
Get started with a free rental analysis to find out how much your new Provo-Orem rental property could be worth!