Greater Toronto Area (GTA) home prices fell in August for the third straight month as higher borrowing costs and economic uncertainty weighed on market activity.

The average price of a GTA home fell 3.1% in August from July to C$1,082,496 ($793,619), while the number of sales was up 0.9%, Toronto Regional Real Estate Board (TRREB) data showed on Wednesday.

"In the short term, we will likely continue to see some volatility in terms of sales and home prices, as buyers and sellers wait for more certainty on the direction of borrowing costs and the overall economy," TRREB President Paul Baron said in a statement.

The Bank of Canada raised its benchmark interest rate in July to a 22-year high of 5% to tackle inflation. A policy announcement on Wednesday is expected to result in rates being left on hold, a Reuters poll showed.

On a year-over-year basis, the number of home sales fell 5.2%. The average home price edged up 0.3% year-over-year but was down 18.9% from the February 2022 peak.

New listings climbed 16.2% year-over-year, showing acceleration after they were up 11.5% in July. ($1 = 1.3640 Canadian dollars) (Reporting by Fergal Smith; Editing by Sandra Maler)