New home sales in the GTA continue to underperform in February, expect increased activity in balance of the year due to cut in sales tax

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Toronto, March 30, 2026 (GLOBE NEWSWIRE) — New home sales in the Greater Toronto Area (GTA) saw marginal improvement in February 2026 as sales continue to vastly underperform historical averages, the Building Industry and Land Development Association (BILD) said today. BILD anticipates that the recently announced elimination and reduction of the harmonized sales tax (HST) on new homes, coupled with good selection due to inventory levels and pricing not seen since the late 2010s, create the conditions for sales to materially increase over the balance of the year.

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There were 531 new home sales in February, which was up 16 per cent from February 2025 but 76 per cent below the 10-year average, according to Altus Group*, BILD’s official source for new home market intelligence. Historically, new home sales for a typical February in the GTA would be 2,251 units based on the previous 10-year average.

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“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. “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.”

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Condominium apartments, including units in low, medium, and high-rise buildings and stacked townhouses, accounted for 171 units sold in the GTA in February, down 2 per cent from February 2025 and 88 per cent below the 10-year average.

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There were 360 single-family home sales in the GTA in February, up 27 per cent from February 2025 but 57 per cent below the 10-year average. Single-family homes include detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses).

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Total new home remaining inventory in the GTA changed little compared to the previous month, at 20,291 for February. This includes 14,291 condominium apartment units and 6,000 single-family dwellings. This represents a combined inventory level of 27 months, based on average sales for the last 12 months.

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“With the temporary harmonized sales tax cut announced last week by the Ontario and federal governments 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,” said Justin Sherwood, Chief Operating Officer at BILD. “The suspension of the harmonized sales tax on new homes under $1 million and further HST reductions on homes from $1 million to $1.85 million, combined with housing prices having moderated over 20% on average since 2022, and unparalleled product choice due to high inventory level – homebuyers have a historic opportunity to enter the market. Now really is the time for those wishing to buy a new home to take advantage of current market conditions and the time-bound tax relief.”   

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The benchmark price for new condominium apartments in February in the GTA was $1,022,063, remaining at an apparent price floor. The benchmark price for new single-family homes was $1,423,219, which was down 7.4 per cent over the last 12 months.