Ada County has done it once again: The median price for a home reached another record.

The increases in home prices, however, are not unique to one area. Strong demand for homes and ultra-low interest rates are fueling home price gains.

Folks with the Boise Regional Realtors point to the lack of inventory as another factor in today’s competitive market.

On average, homes on the market sold within 13 days. This is nearly 20 days faster than last year’s pace. The competition for a small inventory of homes accelerated home price increases as well. This is welcome news for current homeowners who continue to earn new equity as the market expands.

Insiders don’t see a slow down any time soon, either. During the winter, the real estate market tends to settle. That is not the case this year. In fact, after a jittery start due to the pandemic, the real estate market has taken off and not looked back.

The National Association of Realtors ranks Boise as the second most resilient market in the COVID-19 era. New residents, historically low interest rates and increasing apartment rental prices are the primary reasons for this distinction.

The record rise of home prices also benefits current homeowners, who are earning new wealth through rising home equity. As prices increase, homeowners can leverage their home’s new value to accomplish a number of things.

As a homeowner with accumulated home equity, you can apply for a refinance loan to save money. With today’s low interest rates, you may be able to substantially lower the amount of interest paid and thus enjoy lower monthly payments. Over the life of a loan, this could translate into tens of thousands of dollars saved.

In addition, homeowners can refinance and borrow against their equity. Through a cash-out refinance or home equity line of credit, you can increase your financial flexibility, pay off debt or make a large purchase.

To learn more about how you can make the most out of your home equity, please contact our team today.

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