Ontario's new HST rebate drove a sharp rebound in low-rise new home sales in April, but one property type remains stubbornly below historical norms
The Greater Toronto Area's new housing market posted its strongest single-family result in years last month, as Ontario's expanded Harmonized Sales Tax (HST) rebate began to register in sales data.
According to data from Altus Group compiled for the Building Industry and Land Development Association (BILD), a total of 1,100 new homes were sold across the GTA in April. That's nearly triple the 384 recorded in the same month a year earlier.
Despite the headline rebound, the overall figure remains 55% below the 10-year average of 2,418 units for a typical April.
Single-family homes, including detached, linked, semi-detached, and townhouses, accounted for 901 sales in April, up from 241 in April 2025. That figure also cleared the historical benchmark, landing 21% above the 10-year average for April.
The condominium sector, however, told a different story. Just 199 apartment units changed hands during the month — a fraction of the 1,673 sales that a typical April would produce based on the 10-year average.
Detached homes are showing signs of stability even as condos remain under pressure.
— Canadian Mortgage Professional Magazine (@CMPmagazine) May 8, 2026
Kyle Green notes that falling new supply and stronger detached demand could help the segment level out, while condos continue to struggle with excess inventory.https://t.co/WlLngUl1q3
Inventory and benchmark prices
Total new home inventory in the GTA dipped below 20,000 units in April for the second time in 22 months, with 19,044 units remaining, comprising 13,331 condominium apartment units and 5,713 single-family homes.
Benchmark pricing remained under pressure. The benchmark price for new condominium apartments in April was $1,029,164, while the benchmark for new single-family homes was $1,421,835, down 7.1% over the prior 12 months.
Matthew O'Neil of Connolly Capital previously told Canadian Mortgage Professional that pricing problems in the preconstruction market will persist despite the rebate. "The problem with pre-con pricing is that even after this new rebate, it's still priced way higher than resale," he said.
Rebate flows to buyers, but clarity still needed
Micky Khaneka of MKG Mortgages in Toronto previously told CMP the rebate sends a signal that the government is listening.
“I think first-time buyers have always struggled with affordability and on pre-construction, the HST can amount to a lot. Let’s say on a $1 million home – 13% is $130,000.”
“So you take that away, even though it’s not going to be a make or break and [buyers] aren’t all going to jump back in immediately, I definitely think it’s a signal that the government’s listening and they’re really trying to reprioritize this because taking that out helps.”
Edward Jegg, Research Manager at Altus Group, said pricing data suggests buyers are receiving the full benefit of the measure.
"Pricing continued to be competitive, with nearly like-for-like prices before and after the introduction of the rebate — suggesting the full rebate was flowing through to consumers," he said.
Read more: HST relief draws buyers to new homes, but appraisal risk at closing remains
Jegg added that years of pent-up demand are positioned to sustain the market's positive momentum, though he noted that the pace of recovery will depend heavily on how quickly prospective buyers receive clear guidance on how the HST rebate will be administered.
Justin Sherwood, Chief Operating Officer at BILD, called the low-rise result a testament to buyer appetite, but underscored the urgency of legislative clarity.
"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," he said.
As of early May 2026, the enhanced rebate remains subject to the passage of provincial legislation and amendments to federal GST/HST regulations, leaving builders and homebuyers navigating an uncertain timeline.
One mechanism under discussion would see builders claim the rebate and reduce the purchase price directly, while another would require buyers to apply through the Canada Revenue Agency.
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