Orem-Provo, Utah makes USA Today’s list of the top 25 hottest housing markets in the United States. As a matter of fact, it didn’t only make the list, it ranked 6th. With a vacancy percentage of 0.34%, ranking only 0.11% behind Silicon Valley, this area has become one of the most desirable areas to live in the nation. How does this affect American Fork and other regions north of Orem? Development from Orem has started to spread rapidly into areas such as American Fork, Pleasant Grove and Lehi. Although less developed than the Orem-Provo area, these regions are projected to be the new hot spots in the years to come. This is good news for buyers and sellers.
Why is American Fork becoming so popular?
Utah’s population is increasing at an average rate of 2.03% and has become the fastest growing state in the nation. According to Inc. Magazines “If you have fewer people, there are fewer companies being formed.” With a median age of 29 years old, Utah’s thriving young community has become a breading ground for small start-up businesses. Surrounded by several major universities, these businesses are supplied with a steady flow of skilled graduates. This is especially intriguing to tech companies and if you have been paying attention, several large tech companies are beginning to develop their facilities in American Fork and surrounding areas.
Image of Domo’s new facility in American Fork, ranked as one of the fastest-growing large software company on the 2017 Inc. 500.
Rise of the Silicon Slopes
As a rival to California’s flourishing Silicon Valley, Utah’s Silicon Slopes is starting to become a force to reckon with. The Silicon Slopes, much like Silicon Valley, is a large cluster of tech companies encompassing the Wasatch Front. Including companies such as: Microsoft, Adobe, Domo, Oracle, etc. These companies supply the surrounding area with hundreds of above average wages. The number of tech companies is growing so quickly that they are actually short handed of skilled tech workers. Tech companies have reported needing to recruit out of state tech workers just to keep up with the growth. A large portion of this growth is happening right in American Fork, flooding the housing market with a large number of well payed individuals seeking to be closer to work.
Housing Market Impacts
Zillow’s Home Value Index for American Fork,Utah. Estimate growth of 4.6% for 2018.
Seller Impact
With Orem’s vacancy rate being at an all time low, there simply are not enough homes to keep up with the demand. Homes are closing quickly and often times selling above market value and asking price. With that being said, inevitably development would have to continue to grow outward and away from these areas, which it has. American Fork is experiencing some of the most rapid growth in the state, shopping malls, large high-rise buildings and communities are popping up everywhere. This development could be a replication of what has happened to Orem’s housing market over the past 8 years. Orem, according to Zillow, has experienced an almost 50% increase in average home values. Could American Fork be next? At this rate orem is projected to do even better! American Fork has experienced a 30% increase in the average home value during the same time span as Orem, with most of its development yet to come. So far in 2017 American Fork has seen a 9% increase in the average home value and we are expecting this to continue for the foreseeable future. Wether you are selling now or later, chances are you are coming out ahead.
Buyer Impact
American Fork has a bunch of newly developed areas and more to come. As a buyer now is the time to buy. With a median home value of $268,600, almost $50,000 less than Orem, you could get settled into a newer development for a reasonable price. At todays conservative projections, if you were to buy a $300,000 home it could be worth around $400,000 in just 5-6 years, what an investment! Take advantage of the market while you can because chances are the future will not yield better prices.
How do I buy or sell in this area?
If you are interested in buying or selling in this area, get in touch with one of our real estate experts.
or come see us at our new location in South Jordan, Utah
4020 W. Daybreak Parkway,
South Jordan, UT 84009
United States
Sources
https://www.usatoday.com/story/money/personalfinance/real-estate/2017/11/21/25-metro-areas-hottest-housing-markets/879482001/
https://www.zillow.com/american-fork-ut/home-values/
https://www.census.gov/newsroom/press-releases/2016/cb16-214.html
https://www.forbes.com/sites/alexkonrad/2017/07/11/how-utahs-silicon-slopes-became-clouds-new-capital/#16ab90633310
