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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, a decrease of 19.7% compared to the same month a year ago. 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.
