Does he still want to be with me and just wants some space after fighting?

To start with background info, my first relationship did serious damage to my outlook on being in a relationship, and not being scared of ending up where I was before.
My best friend and I have been close and have always had a connection that was more than just being friends. I told him no, despite how persistent he was, because I refused to make him a rebound guy after finally removing myself from my previous relationship.
We began dating for a couple months and I screwed up letting my emotions and my mouth get the best of me and unintentionally compared him to my ex which is a big no no. I know right now to prevent myself from hurting him, or even me, it's best we are just friends. He brought that up, but said later down the road we can pick things up again, but for right now just friends. Also, he never asked for his things back that I have of his, and did not give me my stuff back that I gave to him. I have a personalized jacket of his and a favorite t shirt of his? He was also wearing the shirt I got him as a gift today, which I was not expecting.
Does this mean he just needs his space? Does this mean he still cares a lot about me and wants to make things work some day?
He is the first guy I have ever wanted to be with. It's different with him. I can't explain what it is. I told him that. I will do whatever it takes to fix things with him, because he's worth it. Any thoughts and advice?

You're afraid to be in a relationship and he's likely picking that up in your body language and your actions. You just got out of a relationship so why jump into another one?

I think Your "friend" is still your "friend" he's just put the brakes on being your romantic partner until you're not so skittish. I think you'd do well to see a therapist about your baggage and how to come to terms with whatever it is your ex put you through so that you don't continue to make any new man that comes into your life suffer for what he (your ex) did to you.

Good luck.

I got out of that relationship a year ago and thought I was ready for another one and the first couple months I was fine, then these past couple weeks I became skittish and all over the place with my hormones.
I think you're right. Right now we probably both need our space, and I need to balance myself out again, so that's exactly what I'm going to do.
Thank you for very much for your input. It helps a lot!

Well done! Stick around and contribute if you have the time and the inkling. :)