Toronto’s new-home market began showing signs of recovery in April as buyers responded to Ontario’s temporary HST rebate program, the Building Industry and Land Development Association (BILD) reported Wednesday.
BILD noted the rebate spurred stronger activity in the low-rise segment, pushing sales above the 10-year April average for the first time in three years. Condominium sales, however, remained weak amid ongoing uncertainty about how the rebate will apply to high-rise developments.
Altus Group, BILD’s market intelligence provider, reported 1,100 new-home sales across the Greater Toronto Area in April, compared with 384 in April last year. Although this marks a significant increase from the record low a year earlier, overall sales were still 55 percent below the 10‑year April average of 2,418 units.
Low-rise market shows rebound
Single-family homes accounted for the bulk of April’s gains, with 901 sales versus 241 a year earlier. This category includes detached, semi-detached and townhouses (excluding stacked townhouses).
Edward Jegg, research manager at Altus Group, said the rebate’s impact was most pronounced in the low-rise market after it took effect on April 1. Pricing remained broadly competitive, with near like‑for‑like prices before and after the rebate launch—an indication that much of the rebate benefit flowed through to buyers.
Jegg added that pent-up demand accumulated over recent years could help sustain momentum if the government issues clearer guidance on rebate implementation. The benchmark price for a new single-family home in the GTA was $1.42 million in April, down 7.1 percent from a year earlier.
Condominium market still sluggish
By contrast, condominium apartment sales totaled 199 units in April—only slightly higher than the same month last year and about 88 percent below the 10-year average. BILD COO Justin Sherwood said uncertainty about eligibility rules and rebate administration has dampened high-rise activity.
“It is imperative the government provide clarity as quickly as possible on program details, eligibility requirements, appropriate forms and rebate mechanisms,” Sherwood said.
The benchmark price for new condominium apartments in the GTA held around $1.03 million, which BILD characterized as an apparent price floor. Meanwhile, remaining new-home inventory across the GTA fell below 20,000 units for the second time in 22 months, landing at 19,044 units in April.