Idaho has reopened in terms of the COVID-19 pandemic. Although we are still under a mask mandate in Ada County, life has resumed a “new normal” for most people here in the Treasure Valley. Home prices continue to be driven by a shrinking supply of existing homes available for sale and low mortgage rates have increased buyer’s purchase power.
ADA COUNTY
Home prices in Ada County were up again in September — a result of the competitive housing market which is being fueled by low mortgage rates and limited supply compared to demand. The overall median sales price, including existing and new home sales, reached $409,945 last month, an increase of 17.2% year-over-year.
According to Freddie Mac, the average 30-year fixed rate mortgage was at 2.9% in September, down 19.7% year-over-year when compared to the September 2019 mortgage rate of 3.61%. While the actual interest rate a borrower receives is based on a variety of factors, the very low rates, as well as increasing rents (as reported by BoiseDev) may be encouraging more people to consider a home purchase.
One way to measure that supply vs. demand relationship is with the Months Supply of Inventory metric (or MSI) with a balanced market tracking at 4-6 months of supply. In September, MSI was at just 0.4 months, meaning, if no additional homes were listed for sale, Ada County would run out of homes to buy in under two weeks. Homes are also going under contract faster — another indicator of a competitive market. In September, existing homes spent an average of only 17 days on the market, compared to 26 days in September 2019.
CANYON COUNTY
REALTORS® are a homebuyer’s best resource to help navigate inventory options and offer strategies, as well as help sellers’ field multiple offers or coordinate a simultaneous sale and purchase. They can also help connect consumers with lenders and other financial resources. Whether you are just getting started and you need help finding a lender or down payment assistance, or if you’re pre-approved and ready to find your next home, a REALTOR® can provide valuable expertise and guidance.
When you’re ready to make a move, we are here for you. Contact us today!
** This information is provided by Boise Regional Realtors.
