That figure comes from dividing active listings, after removing conditionally sold units, by the month's sales volume, so it moves with both sides of the equation. A jump in new listings or a slowdown in sales would push the number toward balanced territory even without prices changing.
A citywide reading also masks real variation by neighbourhood and price band. A starter home under $444,700 can see multiple offers while a higher-end property in the same city sits for months, so the label "seller's market" applies unevenly depending on what you're selling.
What matters for your own sale is supply and demand for your specific price point and neighbourhood, not the citywide headline. Get your hand-reviewed valuation from Joel Dyck.