HST rebate on new homes sparks market surge in GTHA
April saw 1,100 new home sales—nearly triple last year's 384—as the federal tax break drives buyer interest.
New home sales in the Greater Toronto and Hamilton Area surged in April following the HST rebate announced in March, signaling the tax break is working as intended.
The Building Industry and Land Development Association reported that 1,100 new homes sold in April, a substantial jump from just 384 sales in the same month last year. Single-family home sales hit 901 units, with 199 condos—marking the first time single-family sales exceeded the 10-year average of 744 since 2023.
However, the broader market remains sluggish. Total home sales were 55 percent below the 10-year average of 2,418 overall. The condo sector is particularly weak, with sales 88 percent below the 10-year average of 5,751.
In March, Prime Minister Mark Carney, Premier Doug Ford, and Mayor Olivia Chow announced an $8.8-billion housing deal that slashed the 13 percent HST on all new home purchases under $1.5 million—potentially saving buyers up to $130,000.
"April new home sales responded to the new HST rebate program as sales showed a noticeable increase," said Edward Jegg of Altus Group. "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." Jegg predicted the surge will continue as pent-up demand kicks in and more buyers learn about the program.