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Ada County home prices reach new record for August

File Photo-- (AP Photo/Keith Srakocic)

If you haven't heard, the housing market in the Treasure Valley is hot.

In fact, according to the Boise Regional Realtors, prices in Ada County have reached a new record for the month of August.

Boise Regional REALTORS said Tuesday that there are three main factors that are driving housing demand in the county — increased economic development, limited housing supply and a growing population. Overall, the average sales price last month of $278,000, is up 9.6 percent from a year ago. The rate of those record sales has decreased, however.

"Think of it like driving your car up a hill: as the road gets steeper, the speed at which you drive decreases. You’re still gaining ground, just not as quickly," Boise REALTORS said.

In January 2015, the Ada County real estate market began to see steadier, year-over-year price growth each month, at 7.9 percent on average through August 2017. Looking back to January 2012 (when the market recovery began) through December 2014, year-over-year price growth fluctuated each month at a much higher average of 13.2 percent.

These early fluctuations were closely tied to changes in mortgage interest rates.

“Rising home prices are great for sellers and our economy overall, but eventually, can cause affordability concerns for buyers, even with low mortgage interest rates,” said Katrina Wehr, president of Boise Regional REALTORS. “Slowing price increases could be an early indicator of the market coming back into balance, but as long as consumer demand outpaces the number of homes for sale, that low supply vs. high demand relationship should keep actual prices moving up.”

Canyon County is experiencing the same slowing price growth. From January 2012 to December 2014, the average monthly, year-over-year median sales price increase was 18.9 percent, compared to the average for January 2015 to August 2017 of 10.5 percent. The actual median sales price in Canyon County for August 2017 was not a new record, but it was up 11. percent from August 2016 to $183,000.

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