PROVIDENCE, R.I. (WPRI) — Rhode Island’s supply of single-family homes for sale remains critically low, with only 864 currently on the market, according to the R.I. Association of Relators.

The median sales price for single-family homes sits at $384,000, which is 4.4% higher than it was this time last year.

“We need more housing at every price level,” Rhode Island Association of Realtors President Bryant Da Cruz said.

Da Cruz tells 12 News starter homes specifically remain scarce.

“Our median sales price continues to grow in large part due to having more move-up homes than starter homes on the market,” Da Cruz explained. “Prospective buyers trying to break into the market for the first time are facing an uphill battle with few choices and interest rates higher than we’ve seen in several years.”

There is a bright side, however, according to Da Cruz.

“[Interest] rates are still lower than the 50-year average of more than 7% and homeowner equity is holding its own,” he added.

Da Cruz said the housing market also looks much different than it did this time last year.

“Last year at about this time people were still buying,” he said. “[Interest] rates were still rather low and there were multiple offers on properties.”

There’s been a nearly 30% drop in sales year-over-year, which is making it difficult for those currently navigating the housing market.

“If you find a property that you love, you need to act rather quickly,” he warned.

The average 30-year interest rate sits at 6.42%.

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