During the month of July, Greater Toronto Area realtors recorded 9,989 home sales through the Toronto Real Estate Board (TREB)’s MLS System, marking a new record for the month.

While sales increased on a year-over-year basis, the number of new home listings continued to fall compared to last year.

“Listings for single-detached and semi-detached houses and town houses continue to be in short supply,” said Larry Cerqua, TREB president, in a press release. “The result has been an increase in pent-up demand and annual rates of price increases well above the rate of inflation. Housing policy is now top of mind for all levels of government. Policy makers need to be focused on solutions to the sustained lack of low-rise inventory throughout the GTA.”

The MLS Home Price Index (HPI) Composite Benchmark price climbed 16.7 per cent year-over-year in July. In addition, the average selling price for all home types combined increased 16.6 per cent year-over-year to $709,825.

“Relatively strong labour market conditions, above-inflation average income growth and record low borrowing costs have kept many households confident about purchasing a home,” said Jason Mercer, TREB’s director of market analysis. “As long as very strong buying intentions are up against an extreme shortage of listings, expect home price growth to greatly outpace the rate of inflation.”