Toronto’s red hot housing market continues to show signs of a prolonged slowdown after new data by Realosophy Realty found another monthly sales decline, while the cost of renting surges.

Home sales in the Greater Toronto Area (GTA) plummeted by 41 per cent in June from a year ago, while prices rose by 5.7 per cent on a year-over-year basis to reach $1.2 million, the data showed. Toronto’s home sales declines hit a fresh 20-year-low for the second consecutive month, according to a tweet by Realosophy Realty President John Pasalis.

Homes in the GTA were on the market for an average of 15 days and only 39 per cent were sold for over the asking price, the Realosophy data showed.

“It’s a pretty steep and rapid decline,” John Pasalis said in an interview. “Home prices should soon come down on a year-over-year basis soon, at least for low rise homes.”

Those GTA residents who rent also saw a spike in living costs as the average monthly cost to rent a home in the region rose 18 per cent to $2,843 in June, or roughly a $400 increase in rental prices over that period. 

Housing activity across Canada has cooled shortly after the Bank of Canada began raising interest rates at the beginning of the year. The Canadian central bank has set its policy rate to 1.5 per cent and is expected to increase it further next week.

“The data is a little bit concerning since we still haven’t seen the full effect of higher interest rates, but at least some buyers will reach home affordability,” Pasalis said.

The Toronto Regional Real Estate Board (TRREB) will release its homes sales and price data for June on Wednesday.