There are more homes on the market in Rhode Island, but buyers are paying a significantly higher premium compared to last year, the state realtor association said in a report released Monday.

The median sales price for a single-family home in July was $495,000, a 12.5 percent increase over what buyers paid in July 2023 and a record, according to the Rhode Island Association of Realtors.

In the condo market, the jump wasn’t as high, but home shoppers are still feeling it: The median sales price for a condo was $395,000, a 9.75 percent bump and a record.

And multifamily properties are still in demand as shoppers look for an investment or a way to help them pay the mortgage. The median sales price for a multifamily in the state was $550,000, a 10 percent jump.

Inventory on the rise

Inventory bumps in the condo, single-family, and multifamily markets — 14.73 percent, 16.19 percent, and 27.04 percent, respectively — are steps in a healthy direction, but “July’s 2.2-month supply of homes for sale pales in comparison to the 4.1-month nationwide supply reported by the National Association of Realtors in June,” the association said.

“We’re seeing inventory begin to creep up slightly and mortgage rates have fallen a bit lately, but we’re still not where we need to be,” Sally Hersey, association president, said in an Aug. 2 press release on the state’s quarterly results. 

“Homeownership is out of reach for far too many Rhode Islanders,” she said.

A supply of at least five months is widely considered balanced.

“We are beginning to see an increase in the number of homes listed for sale,” Hersey said Monday. “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. While this is good news, more new development remains the key to repairing our housing crisis.”

Mortgage rates remain high

A lot of the hope for buyers hinges upon expected drops in the average rate for a 30-year fixed mortgage, but economists have warned not to expect significant decreases. The rate stood at 6.49 percent on Aug. 15. Five years ago, it averaged 3.6 percent, according to the Federal Reserve Bank of St. Louis.

“Fortunately, the Federal Reserve indicated in its July meeting that the first cut in its benchmark interest rate in more than two years could be on the table at its September meeting,” Hersey said in Monday’s release. “That would be a positive step for prospective home buyers as mortgage rates typically follow the trends set by the Federal Reserve.”

Despite climbing prices and mortgage rates in the 6s, buyers are still snapping up single-family properties:

The 18-day timeframe for single-family homes was “the shortest window on record since 1988 when record-keeping began,” the association reported.

In-migration

Out-of-state buyers are playing an outsized role in the price increases and ramped-up competition, but the pace is slowing, according to the association: “Last quarter, 23.4 percent of all residential sales were transacted with buyers from other states, compared to 26.7 percent in quarter two last year.  Unsurprisingly, Providence County attracted the most out-of-state buyers, given that most interstate sales came from neighboring Massachusetts. Newport County saw the second-highest sales involving those from other states.”

The median sales price in Providence County was $450,000 for a single-family home, an increase of 8.43 percent. Homes in Providence proper, for example, sold for a median sales price of $440,000, a jump of 13.26 percent.

In Newport County, the state’s priciest overall, the median sales price for a single-family home hit $695,000, a decrease of 0.36 percent based on a whopping 95.45 percent jump in sales. That’s 86 properties.

“The percentage of Ocean State homes sold for $1 million or more to out-of-state buyers also fell from 49.1% in the second quarter of 2023 to 42% this year,” the association reports.

There were 20 single-family home sales in the city of Newport in July for a median sales price of $1,285,000, a decrease of a little more than 17 percent.

Salve Regina University is overseen by the Sisters of Mercy.

Catholic leadership in Rhode Island has rebuked a local Catholic college, Salve Regina University, for hosting a fundraiser last week in which presumptive Democratic vice-presidential nominee Tim Walz defended abortion rights.

More than 300 attendees reportedly paid $1,000 to get in the door at the campus’ main administrative waterfront mansion, Ochre Court, on Thursday. The fundraiser brought in more than $600,000, the state’s Democratic Party said, according to The Providence Journal.

Media outlets reported that journalists were not allowed to record videos of the speech, but Walz’s comments reportedly included advocacy for abortion rights.

The Minnesota governor attacked Republican nominee Donald Trump and his running mate, JD Vance, accusing them of “rooting for failure,” according to the Rhode Island Current.

“Their whole thing is to instill fear in people — fear and pessimism,” he said.

Walz called Trump and Vance “weird” and disputed GOP claims that Democratic policies are extreme.

“Who’s asking to raise the price of insulin? Who’s asking to take away women’s reproductive rights?” Walz said. “Things really work best in communities when you mind your own damn business.”

Diocese ‘Surprised and Disappointed’

Diocese of Providence spokesman Michael Kieloch told CNA that the diocese “does not permit Catholic institutions in Rhode Island to endorse candidates for office nor even give the appearance of such endorsements.”

“The Church’s role in political matters is firstly to form the consciences of the lay faithful,” he added.

Kieloch continued: “We were surprised and disappointed by the decision of Salve Regina University to rent space to a partisan political event and fundraiser, and we’ve received a number of messages from Catholics across Rhode Island expressing the same surprise and disappointment.”

Bishop Richard Henning, archbishop-elect of Boston, is currently leading the Diocese of Providence.

Walz, a Lutheran and former Catholic, has a consistent and strong pro-abortion record in his state. In 2023, he signed a bill enshrining abortion rights throughout nine months into Minnesota state law. Minnesota Concerned Citizens for Life, the state’s largest pro-life group, called the governor a “threat” to the unborn and “an abortion absolutist.”

Vice President Kamala Harris chose him as her running mate earlier this month.

University Responds

In response to a request from RINewsToday, the university defended its decision to host the event.

“Ochre Court at Salve Regina University was selected by the Rhode Island Democratic Party Committee based on availability for their selected date, time, and anticipated capacity,” an unnamed spokesperson’s statement said.

“We regularly rent facilities on campus for private events. The committee paid the standard rate for the space rental, worked with our University Events and Conference Services office, and is the sole host of the event,” the statement said.

“As an academic institution, the university fully supports freedom of speech as a cornerstone of democracy. As our mission calls us to do, we support productive and meaningful dialogue across our differences as we work toward a world that is more harmonious, just, and merciful,” the statement said.

Salve Regina University is overseen by the Sisters of Mercy. CNA reached out to the congregation for comment on Monday, including asking if the university would offer the same opportunity to the Trump campaign for a fundraiser event. CNA did not immediately receive a response.