Toronto's real estate market is still on a downward slide in terms of both home sales and home prices, new data from TREB shows, but the decline is starting to get less steep.

In its monthly market figures report, the Toronto Real Estate Board shows that the average selling price for all home types across the GTA was down by 6.6 per cent, year over year, in May of 2018.

Compared against the month previous, however, the average selling price was actually up 1.1 per cent, from $804,584 to $805,320.

Home sales, on the other hand, were still lower in May than they were in April, but not by much; only 0.4 per cent.

Year over year, we saw a decline of 22.2 per cent last month, with only 7,834 sales reported through MLS — but that actually marks an uptick in market activity, as the annual rates of decline were more than 30 per cent in February, March and April.

Analysts believe that a lack of home supply (new listings were down by 26.2 per cent, year over year, in May) is driving up competition between buyers

This, says TREB's Director of Market Analysis, Jason Mercer could boost home prices overall in the coming months.

"Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019," said Mercer in a press release on Monday.

"There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth."