New listings of Toronto homes surged in May from a year earlier while sales plunged and price gains slowed slightly in the wake of new housing rules aimed at cooling the market in Canada's largest city.

Toronto Real Estate Board said on Monday the average home price rose 14.9 per cent in May from a year earlier, well below the pace of gains seen in recent months, while new listings jumped 48.9 per cent and sales fell 20.3 per cent. The sharp shift in the Toronto…