PROVIDENCE, R.I. (WPRI) — The Ocean State’s housing market is continuing to break records, according to the Rhode Island Association of Realtors .

The median price for a single-family home in Rhode Island reached $495,000 in July, which is $1,000 more than the month prior.

June’s $494,000 median sales price marked a nearly 12% increase from the previous year, even though there were about 32% more homes on the market.

The number of listings was up more than 16% last month, which in turn sparked a 21% increase in sales activity.

R.I. Association of Realtors President Sally Hersey said the number of pending sales stabilized after 30 consecutive months of decline.

“We are beginning to see an increase in the number of homes listed for sale, and fortunately, anticipated rate cuts this fall should entice more homeowners who were previously unwilling to let go of their current low mortgage rates, to consider making a move,” Hersey explained. “While this is good news, more new development remains the key to repairing our housing crisis.”

There is still a significant imbalance in supply and demand statewide. The state currently has more than two month’s worth of housing inventory. (In order to have a balanced market, the state needs to have five to six months’ worth of housing inventory.)

The lack of single-family homes for sale has resulted in listings going under contract in just 18 days last month, which is the shortest window on record for the R.I. Association of Realtors.

“Overall, there are promising signs for our housing market,” Hersey said. “More inventory and lower interest rates should help to get the market moving.”

Meanwhile, condominium sales spiked by nearly 45% last month. Hersey believes the tight supply of starter homes on the market has caused first-time homebuyers to look elsewhere.

“[First-time homebuyers] are at a disadvantage,” Hersey explained. “What we saw as a result of that was the condominium market really took off.”

Hersey said condominiums are “a much more affordable” option for those in search of their first home.

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