Yet home prices are still higher compared with a year ago, and it's unlikely they will fall too steeply.
While that has some buyers pulling back, and some sellers lowering what they're asking for, strong demand and tight supplies are supporting prices.
Black Knight, a real estate software, data and analytics firm, reported the second straight month of declines in August, with prices down 0.98% from July.
Put together, these mark the largest monthly declines in more than 13 years and the eighth largest since at least the early 1990s, Black Knight said.
That skews prices higher.