The Toronto Real Estate Board says the average resale price of a home in the Greater Toronto Area climbed to $709,825 last month, up more than 16 per cent compared to a year ago.

The average price of a detached home soared 21 per cent from July 2015 to $952,983.

The real estate board says there were 9,989 homes that changed hands in the Greater Toronto Area last month — the highest number ever recorded in July.

That's up from 9,813 in July of last year.

The number of new listings shrank roughly seven per cent to 13,542 last month, reflecting what the real estate board calls a "troubling trend" as demand outpaces supply in the Toronto area.

The average condo price in the Greater Toronto Area rose 9.2 per cent to $406,865.

"Housing policy is now top of mind for all levels of government," Toronto Real Estate Board president Larry Cerqua said in a statement Thursday.

"Policy makers need to be focusing on solutions to the sustained lack of low-rise inventory throughout the GTA."