Real estate sales in May set a new record in Hamilton.

The latest report from the Realtors Association of Hamilton-Burlington shows 1,844 sales processed through the Multiple Listing Service System. That's two per cent higher than the same month last year and a new record for the month of May.

Most troubling, however, was that the number of properties listed for sale dropped by more than 13 per cent, to a number 4.1 per cent lower than the 10-year average. The 2,265 properties listed were 13.4 per cent lower compared to May of last year.

"Record sales for the month combined with relatively few new listings has left us with only a little over a month's worth of residential inventory," RAHB CEO George O'Neill said in a news release. "This seller's market shows no signs of slowing down."

Residential freehold sales were 2.1 per cent higher than May of 2015 while sales in the condominium market decreased by almost one per cent.

The average price of freehold properties showed an increase of 11.1 per cent compared to May of last year; the average sale price in the condominium market increased by 11.5 per cent when compared to the same period.

The average days on market dropped to 22 days from 32 in the freehold market and to 25 days from 31 in the condominium market, compared to May of last year.

The report shows 1,172 properties listed for sale in Hamilton in May compared to 1,292 for the same month last year. Sales were 992 units, up from 950 last year. The average price was $435,265, up from $369,803 last year.

In Burlington, 413 properties were listed in May and 363 sold for an average price of $649,936.