Despite a summer marked by falling mortgage rates and increased inventory, homebuying activity in Greater Boston has cooled since late spring.

The 2.5% decline followed a 1.3% increase in July, according to the National Association of REALTORS®. 

For the second month in a row, housing affordability in the Bay State rose in August, a positive sign for homebuyers.

Single-family home prices rose 5% from last year to $630,000.

Specifically, prices rose 4.3% annually after growing by 4.7% in June. 

A new study ranks major U.S. cities by their rent prices and the income needed to afford them, with Boston near the top of the list.

July’s seasonally adjusted annual rate of 739,000 represented a 10.6% jump from June’s upwardly revised rate of 668,000. 

The pace of home sales increased 1.3% from June after months of decreases, the National Association of REALTORS® said.      

The combination of rising inventory and price reductions in Boston and nationwide is creating a more buyer-friendly market.

The National Association of REALTORS® said its Pending Home Sales Index rose 4.8% month over month. 

The median sale prices for both single-family homes and condos reached new all-time highs last month, as low inventory continues to drive up prices.

The record-breaking sales price comes as the pace of transactions slid from April, the National Association of REALTORS® said. 

Boston’s median price per square foot has surged since 2019, marking one of the highest increases in the nation, according to Realtor.com’s May Housing Report. 

The S&P CoreLogic Case-Shiller U.S. National Home Price Index has hit a new record for six of the last 12 months, as demand remains strong in the face of tight inventory.

At the same time, the median price of a new home sold in April declined as well. 

Meanwhile, the median single-family home price reached $610,000, the first time it exceeded $600,000 this year.