The average price of a GTA home rose to nearly 1.2 million in May, up 3.7% from April.

The upward momentum is being maintained by a supply shortage that is pushing up prices and competition among buyers who have adjusted to higher interest rates and are jumping back into the housing market. Sellers, however, are still standing on the sidelines for fear of not being able to find their next home.

At the end of May, there were 1.3 months of inventory remaining. That is a measure of the amount of time it would take to sell all the listed properties if the pace of sales remained the same. In January, there were 2.76 months of inventory remaining. This points to a substantial tightening over the first five months of the year.