While GTA new home sales increased by 16 per cent year over year in February, sales remained well below the historical average.
But the recent expansion of the HST rebate on new homes, as well a good selection of inventory and lower prices, could boost sales for the rest of the year, the Building Industry and Land Development Association (BILD) said in its monthly report Monday.
There were 531 new home sales in February — up 16 per cent from February 2025 but 76 per cent below the 10-year average for the GTA. Historically, new home sales for a typical February in the GTA would be 2,251 units.
“New home sales in February 2026 continued to fall well short of historic norms with only a modest increase from the previous year’s record low for the month,” said Edward Jegg, research manager at Altus Group, BILD’s source for new home market data.
“A stable interest rate environment coupled with elevated inventory levels present potential buyers with plenty of opportunity to buy a new home. However, persistent concerns around affordability and geopolitical tensions continue to weigh on buyers’ minds.”
There were 171 units sold for new condos, down two per cent from February 2025 and 88 per cent below the 10-year average.
Single-family homes performed better with 360 sales, an increase of 27 per cent year over year, but 57 per cent below the 10-year average.
Total new home remaining inventory in the GTA was relatively flat compared to January, with 20,291 units listed.
The inventory level — the time it would take to sell inventory on the market based on current demand — is 27 months. A healthy market level is around nine to 12 months.
While the market remains sluggish, it presents a golden opportunity for buyers, said Justin Sherwood, BILD’s chief operating officer.
“Housing prices having moderated over 20 per cent on average since 2022, and unparalleled product choice due to high inventory level gives homebuyers a historic opportunity to enter the market,” Sherwood said.
The price for new condos has remained around $1 million for some time, Sherwood said, and February was no different with the price sitting at $1.02 million. And for new single-family homes the price was $1.42 million — down 7.4 per cent over the last 12 months.
On March 25, the federal and provincial governments injected $2.2 billion into Ontario’s sputtering home construction industry with a one-year break on the HST for buyers of new houses and condos.
This means new home buyers are exempt from the 13 per cent harmonized sales tax for one year on all new homes worth $1 million or less.
It is an expansion of the existing rebate introduced last fall that was only available to first-time buyers of new homes.
However, some critics warn the HST expansion could invite more investors into the market, instead of helping homeowners.
“With the temporary harmonized sales tax cut announced last week by the Ontario and federal government for all new home buyers, now is truly the best time in a decade for those looking to buy a new home to get into the market,” Sherwood said.
