PROVIDENCE, R.I. (WPRI) — There’s been a slight increase in the number of homes for sale in Rhode Island, according to the R.I. Association of Realtors.

The median sales price for single-family homes currently sits at $440,000, which is 7.3% higher than it was this time last year.

The number of single-family homes sold also dropped by 27.8% in the same timeframe, which contributed to the increase in supply.

“Mortgage rates have been creeping up further this summer which has slowed sales activity,” R.I. Association of Realtors President Bryant Da Cruz said. “While that has increased the supply of available homes a little bit, we’re watching rates carefully as housing costs have been a main driver of the increase in inflation.”

“The housing market helps drive the economy, so it’s important that we’re able to keep sales moving,” he added.

Rhode Island had a 1.7-month supply in July, which was the highest reached since October of last year. Typically, a balanced housing market has a six-month supply.

The number of multi-family homes sold last month increased by 11.1% from last year. There are fewer multi-family homes for sale in Rhode Island, which currently has a 1.5-month supply.

“Multifamily homes have wide appeal for investors,” Da Cruz said. “It’s no secret that rents have skyrocketed and with mortgage rates rising, the supply of prospective tenants is growing.”