[pushkins]

The main water supply line into the house should be sealed around the pipe, usually this is done both internally and externally.
If in the last 7 years you have not had a similar problem then I'd have to first side with looking into any bad grading or downspout issues. It could be that a drainage pipe from a downspout is clogged and allowing water to back up in the pipe until it overflows or finds another way out.

Water can be very bad for foundations so you don't want to put the fix in the "only when it rains hard" problem file.
Your house being only 7 years old probably means you do in fact have a good foundation drainage system (depending on where you live...lol). You don't want to just seal the inside of the house side of the pipe, this will allow water to still penetrate into the block cavity, sorta like putting your finger in a dike approach. You may well be able to dig down on the outside to the pipe, clean the area and seal it yourself with an approved sealer, 8 block courses = about 66" and I'm sure at least 2 block courses are above grade on the outside so that would make the dig about 48".

If there is room around the pipe where it comes through the basement wall, you might be able to use expandable foam and stick the little straw like nozzle all the way through, this may also work as a repair.