The Toronto Real Estate Board says the market is shifting to favour sellers as the number of home sales jumped in May and the number of listings barely budged.
It says there were 9,989 sales in May, up 18.9% from the 15-year low for the month hit last year, while listings grew by only 0.8% to 19,386.
The tightening market helped lead to a 3.6% increase in the average selling price year-over-year to $838,540, compared with a 1.9% increase in April and 0.5% for March.
TREB president Garry Bhaura says that while the market is improving after a sluggish start to the year, sales activity is still below the longer-term norm.
The board says the single-digit price increases are largely sustainable, but if listings continue to lag it could accelerate price growth.
It says many households aren’t listing their homes because they don’t feel there are housing options available to better meet their needs.