Home sales and prices in Orlando continued to drop in August, according to a report released Friday.

The 2,792 sales in the month were down 2.1% from 2,852 in July, and were 16% lower than the 3,324 sales in August of last year, according to the Orlando Regional Realtor Association, which looks at sales from Orange, Osceola, Seminole and Lake counties.

The median home price fell from $380,000 in July to $375,000 in August, the report said. The median home price had reached $385,000 in June. 

July saw the first drop in the median home price this year, and that month also saw sales drop 8.7% from June. Higher interest rates and limited inventory were the reported problems that month. 

Interest rates, low inventory, and high prices for modest earners remain challenges in the market, said Ingrid Dodd, an agent with Investors Real Estate in Winter Park. Dodd represented two buyers in deals in Volusia and Polk counties in August.

“I’m seeing a lot of skittish buyers,” Dodd said.

Interest rates improved slightly in August, going from 6.8% in July to 6.6% in August, according to the report. There were 2.19 months of home supply in August, up from 2.01 months in July, but still well below the six months that real estate analysts consider to be a healthy market.

“Fall can have its benefits for buyers,” said Lisa Hill, president of the Orlando Regional Realtor Association, in a news release.

“With our market cooling off, fall homebuyers will face less competition, find more inventory, and see median home price pull back a bit,” Hill said.