Home prices in Ada County hit a record high in June, with the median sales price for new and existing homes hitting $253,000, beating the previous record that was set in July of 2006. Median prices have jumped 10 percent from last year at this time. Carey Farmer, president of the Boise Regional Realtors and a broker associated with Group One Sotheby’s, said this time, it’s not market speculation that’s driving up prices, like it was a decade ago. Instead, the price increase is being driven by consumer demand vs. supply.

That’s illustrated by the two parts of the market: Newly constructed homes vs. existing homes. The median sales price for new-construction homes in Ada County is actually down 7.7 percent from last year, at $304,500 for June. That’s because far more lower-priced newly constructed homes have come onto the market and sold. By contrast, prices for existing homes are up, while the number on the market is down.

The Realtors group credits population growth and the aging of millenials, a large population group, into homeownership for the overall increase. Meanwhile, home purchases have remained relatively affordable due to historically low interest rates and the area’s strong economy, Farmer said. “When we look at the income needed to purchase a median priced home in Ada or Canyon county, based on today’s mortgage rates and local income levels, things are still quite affordable,” Farmer said.