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.
‘They need to get it done’: Ontario housing minister to Ottawa
Speaking to reporters at Queen’s Park on Wednesday, Ontario Minister of Municipal Affairs and Housing Rob Flack urged Ottawa to pass the federal portion of the HST rebate as soon as possible.
“Every day is a wasted day,” he said, noting that the uptick in sales is not limited to the GTA, pointing to 4,000 new home purchases provincewide since April 1.
“They need to pass a regulation to make (it) work through the CRA. We’re waiting on them patiently, maybe not so patiently...they need to get it done, because it’s 100 per cent guaranteed, they’ve committed to it, they just got to get the regulation put in place.”
Ontario Green Party Leader Mike Schreiner was also asked about the holdup on the federal legislation, and said there’s “a lot of anxiety” for home buyers right now as a result.
“I have people reaching out to my office saying, ‘Should I buy a house right now or not? Will I get the HST taken off or not?’ It’s creating disruptions in the market at a time when we’re facing the worst housing crisis in Ontario’s history,” he said.
Asked if prospective home buyers should trust that the governments’ assurances that the rebate will come through in full, Schreiner said: “That’s a huge investment to take on anyone’s word.”
With files from Codi Wilson
