Home sales and price growth both continue to accelerate at a rapid pace in Toronto, even as economists sound the alarm over a looming real estate bubble — one that will be absolutely enormous if and when it bursts.

A staggering 9,148 home sales were reported across the GTA between March 15 and March 31 of 2021 alone, according to new figures released by the Toronto Regional Real Estate Board (TRREB) on Tuesday.

This represents an increase of 174 per cent compared to the same time period one year earlier, thought it's important to note that sales activity dropped off dramatically during the second half of March 2020 due to the initial impacts of COVID-19.

Still, realtors say sales were strong in general last month thanks to favourable borrowing costs and "continued improvement in many sectors of the economy."

JUST RELEASED! Consumer Confidence And Low Interest Rates Drive Up Homes Sales In GTA! Access TRREB’s latest Market Watch Report to learn more.

FULL REPORT HERE: https://t.co/gYPaymBhvt #TRREB #MarketWatch pic.twitter.com/2AvoWbig5G

— Toronto Regional Real Estate Board (@TheReal_TRREB) April 6, 2021

A total of 15,652 sales were reported through TRREB's MLS system in March of 2021, nearly doubling figures from the previous year, and home prices have been following suit.

Selling prices are up 21.6 per cent for all home types across the entire GTA, sitting at an average of $1,097,565 in March of 2021. Detached houses in the City of Toronto proper have risen 19.2 per cent in value, year over year, to reach a new average price of $1,750,518.

The fastest growing segment for average home prices was actually detached homes in 905 regions, however, rising 34.1 per cent year over year to hit $1,320,570.

And prices are only expected to keep shooting upwards as population growth resumes and demand outweighs supply.

Toronto is on the verge of a new housing affordability crisis https://t.co/g1KixvqsfF #Toronto #TorontoRealEstate #RealEstate

— blogTO (@blogTO) March 10, 2021

New home listings are actually up 57 per cent, year over year, but the annual growth rate for listings remains "well-below that of sales," putting the crunch on inventory.

"With sales growth outstripping listings growth by a large margin, including in the condo market segment, competition between buyers in some market segments and the potential for double-digit price growth could continue without a meaningful increase in the supply of homes available for sale," said TRREB chief market analyst Jason Mercer in the agency's latest report.

TRREB president Lisa Patel warned similarly that the lack of available homes to purchase could further drive up housing prices in and around Toronto.

"Confidence in economic recovery coupled with low borrowing costs supported a record pace of home sales last month," said Patel. "While the robust market activity is indicative of widespread consumer optimism, it is also shedding light on the sustained lack of inventory in the GTA housing market, with implications for affordability."