Toronto home prices fall for second straight month in July.

Home prices in the Greater Toronto Area (GTA) fell in July for the second consecutive month, with sales falling nearly 30 percent due to continued increases in mortgage rates by the Bank of Canada.

Data from the Toronto Regional Real Estate Board (TRREB) released Thursday showed the region's median home price fell 5.4 per cent in July from June to CAD 1,118,374 ($837,796) and the number of sales fell 29.7 per cent.

"It appears that the sales momentum we saw in the spring has slowed since the Bank of Canada resumed its rate hike cycle in June," said board president Paul Baron.

The Bank of Canada raised interest rates in June after a five-month pause and again in' 'last month, leaving it at 5%, the highest level in 22 years. Thus, the aim was to slow the economy and contain inflation.

The money market estimates the likelihood of further central bank monetary policy tightening this year at around 75%.

The number of home sales rose 7.8% in July from a year ago, and the average home price rose 4.2%.

The number of new housing supply grew faster than the number of sales, rising 11.5% year-on-year.

1 CAD = $1.3349.

(Reported by Fergal Smith; Edited by David' 'Gregorio)