The condo market
near the Utah Valley University
(UVU) currently favors
buyers. The report below
examines three key market
factors--demand, supply and
prices in the Orem and Provo
areas of Utah.
Demand:
The demand for condos and
townhouses near
the UVU is in a downturn,
decreasing by 35.84% from
year-to-date (YTD)
comparisons of 2007 and 2008.
The past four years of YTD
comparisons show this year
with the lowest number sold.
Over the past 12 months 398
condos have sold in the
area.
Supply:
Currently there are 237
condos listed on the market
near the University.
Comparing YTD figures for
2008 and 2007 the supply of
residential property for
sale in the area has
decreased slightly by 2.67%.
Prices:
The median condo price near
the UVU is $186,950 while
the average condo price is
at $189,912. The highest
price condo currently on the
market in the area is listed
at $375,000. Prices for
condos that have actually
sold show a median price of
$151,625 and an average
price of $160,201. Prices
are slipping slightly
showing a modest drop of
less than 1% YTD 2008 over
YTD 2007.
Conclusion:
Current market conditions
favor condo buyers in Orem
and Provo due to
good supply and relatively
low demand. Prices show a
only slight decrease so far
this year but are likely to
end the year on the up-side
as forecasted by many
economists. Even with a
slight decrease this year condo buyer's
can still anticipate that
their investment
will increase in value over
the long run.
Current low interest rates
favor buyers who are ready
to purchase now. Many condo
sellers are willing to
negotiate prices with
buyers.
Source:
Wasatch Front Multiple
Listing Service and
condosUtah.com.
