New home sales in Toronto spurred by new HST rebate, but one property type ‘continues to struggle’

A new townhouse complex is under construction in Toronto on Thursday, November 3, 2016. THE CANADIAN PRESS/Nathan Denette

New home sales data for the Greater Toronto Area is out and housing experts say a recently announced HST rebate is helping to prop up a struggling market.

In a news release issued Wednesday, the Building Industry and Land Development Association (BILD) reported that there were 901 new single-family homes sold in April, which they said marks a significant year-over-year increase and 21 per cent jump from the 10-year average.

Those homes include detached, semi-detached, linked and townhouses, all of which were eligible for the expanded Harmonized Sales Tax rebate announced by the provincial and federal governments in March.

Overall, 1,100 new homes were sold last month, up significantly from the record low of April 2025 when only 310 were purchased, but still 55 per cent below the 10-year-average.

Condo sales continued to lag with only 199 units being sold in April – 88 per cent below the 10-year average.

“While the rebate program has helped boost low-rise sales, it has had a more subdued impact on the high-rise sector as the condominium market continues to struggle,” BILD said.

Federal legislation on expanded HST program still pending

Under the program, buyers of new homes valued at up to $1.5 million are eligible for a maximum of $130,000 in tax relief. The program was previously only available to first-time homebuyers under the GST/HST First-Time Home Buyers Rebate.

The program runs from April 1, 2026 to March 31, 2027 and the property must be used as a primary residence or residential rental property.

When the province announced the joint program with Ottawa, it said it would cover eight per cent of the HST, the provincial portion, while the feds would pick up the remaining five per cent.

The province said at the time that the temporary expansion of the program is subject to the “passage of federal legislation.” While Ontario has already passed its budget, which included the measure, the federal government’s legislation has not yet taken effect.

Justin Sherwood, BILD’s chief operating officer, said that he expects the more “modest response” to the high-rise sector following the start of the expanded HST program will be alleviated once the details are finalized.

“It is now imperative the government provide clarity as quickly as possible on the program details, eligibility requirements, appropriate forms and rebate mechanisms to allow builders and buyers to seamlessly implement the HST rebate,”

It’s estimated that the rebate will provide almost $2.2 billion in total joint tax relief for housing in Ontario. The program is also expected to spur 8,000 housing starts, for a sector desperately in need of a boost.

With files from Codi Wilson