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 per cent from the 15-year low for the month hit last year, while listings grew by only 0.8 per cent to 19,386.
The tightening market helped lead to a 3.6 per cent increase in the average selling price year-over-year to $838,540, compared with a 1.9 per cent increase in April and 0.5 per cent 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.