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But the growth rate of existing home sales has declined every month since May.

In August, sales were up only 0.3 percent, with 3,113 homes sold in Wake, Durham, Orange and Johnston counties, compared with 3,103 a year ago, the listing service found. By comparison, sales in August 2005 increased almost 23 percent from the same period a year before.

The listing service statistics primarily reflect existing home sales. Sales of all new homes in the Triangle won't be available for several weeks.

Meanwhile, some builders have not seen slowing sales.

"If there's a slowdown, we're not seeing it to any magnitude," said Centex Homes division president Hampton Pitts. "Our second-quarter starts are identical to a year ago."

But Fonville Morisey Builder Marketing Group, which last year sold about 1,000 homes valued at $400 million, expects sales to fall about 5 percent this year, said its president, Audie Barefoot.

M/I Homes division president Don Fraley expects yearly totals to decline 7 percent to 10 percent from last year.

Lenders and builders blame higher interest rates.

Three years ago, borrowers could lock in 3.75 percent loans for three years with adjustable rate mortgages -- about two points lower than rates for 30-year fixed mortgages. But last week, the average rate for a one-year adjustable rate mortgage was 5.9 percent, according to the Mortgage Bankers Association. The rate on 30-year fixed mortgages was 6.18 percent, the association said.

Signs point to continued cooling in the local market.

For the third consecutive month, pending sales contracts declined, according to the listing service. The current seven-month inventory of homes for sale is at the highest level since October 2004. There were 14,496 listings in August, up 8.5 percent from a year before,.

Too much inventory in the existing home market -- where buyers can often afford to wait for an offer they like -- puts pressure on the new-home market.

Builders usually can't afford to carry too much inventory.

"All the builders are having to do more incentive programs," said Hal Adams, a division president for Bill Clark Homes.

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