Orem Real Estate Market Prices, Trends, and Forecasts 2023

Nicknamed “Family City USA,” Orem is one of the biggest cities in Utah and is a beautiful place to reside. Orem is close to the Wasatch Mountains and Utah Lake, providing plenty of recreation any time of year. Orem was named the best-performing city in the country in 2023 for the third year in a row, sharing the title with its neighboring city of Provo. With significant outdoor areas to explore and numerous entertainment options, it is easy to see why Orem is such a great place to live.

The Utah housing market has seen significant changes in the first half of this year after staying hot in 2021 and 2022. Orem has been noted as one of the cities in the state to keep an eye on in the real estate world. Let’s look at what’s happening in the Orem real estate market in 2023.

Housing prices are down this year compared to 2022 in Orem. The average price in 2022 was $522,491. Now, the average price in 2023 is down to $455,743. There are also more homes available; houses are spending less time on the market and selling quicker.

Although the market has slowed down significantly since 2022, it is expected that there will be a turnaround and things will improve for the remainder of the year. Interest rates are expected to decline slowly, making housing more affordable.

Currently, affordability is a significant obstacle for potential buyers, so fewer people are in the market for a home. However, if home prices continue to decrease at the same rate, more people will likely buy houses in Orem. Utah County continues to grow steadily as it expands in industries, especially tech, creating more well-paying job opportunities and drawing more people to the area.

Home values are decreasing, and more homes are available for sale. The hot market of 2020 and 2021 in Utah led to more houses being built to keep up with the demands of the growing area. However, as the market began slowing down at the beginning of this year, this has left a surplus of available homes for sale. Housing sales have dropped by 10% since June 2021. This is one of the reasons for a significant increase in home listings recently.

Interest rates in Utah County rose from last year due to inflation affecting the entire country. It is important to note that housing affordability is down all over the state, meaning fewer people are buying homes and more are renting instead. This is another reason why we are seeing more homes available for sale.

As mentioned above, Orem has seen home prices decline year-over-year. Historically, median sales prices in Orem are lower than averages in Utah County, including Provo. Given this affordability, it is worth exploring neighborhoods throughout Orem in your search for luxury homes in Utah County.

These neighborhoods in Orem are currently on the market and are worth considering if you are looking to buy a home in this area.

Orem Park is one of the most exclusive neighborhoods in the area. As indicated by the name, the Orem Park area is home to Orem Community Park. This large park contains tennis courts, football fields, soccer fields, baseball fields, and pavilions that are perfect for outdoor gatherings during the warmer months. This area also has schools, shopping centers, and fitness facilities like the Orem Recreation Center. With facilities and community spaces for any type of weather or season, this is a great area to be year-round.

Windsor South is close to all the action in Orem. Near the Hale Center Theater and the All-Together Playground, you will find plenty of exciting activities to do in this area. Windsor South is between two parks: Windsor Park and Sharon Park. With proximity to shopping centers, restaurants, and community areas, you will not have to look far for anything you may need in this area.

Old Orchard is a quiet, more spacious neighborhood with luxurious estates. This neighborhood is home to one of the most exclusive properties in the city: The Magnificent Manoir Du Verger Estate. This area is next to Utah County’s growing technology industry, which has expanded significantly in the last few years. This is a great area to consider as it grows and provides opportunities to own larger properties.

If you are a first-time homebuyer, you might be concerned about interest rates. Mortgage rates are up to 6%, nearly doubling what they were in 2022. Buyers who invested in a home in 2020 are seeing an increase in value in their homes and have a better opportunity to sell and buy than first-time buyers. However, once you are in the market, it can be easier to navigate. For first-time buyers, it is crucial to be mindful of the market and take some time to keep an eye on interest rates, home prices, and trends in the overall housing market.

The best way to navigate the uncertainty of the current housing market is to work with an expert. Real estate agents are up-to-date on all market trends and changes and know how to help you at every stage in the homebuying process. The real estate agents at Maven Realty are local experts and are the first to know about any changes in Orem’s housing market. For the best resources and information regarding the current housing market, contact Helene Kepas-Brown and Sarah Stewart of Maven Realty Utah.