GTA Single-Family New Home Sales Surge While Condos Continue to Lag

GTA New Home Sales Tell Two Very Different Stories

The Greater Toronto Area’s new construction market saw a significant rebound in July, but the recovery is far from evenly distributed.

New single-family home sales more than tripled compared with July 2025, while new condominium sales remained dramatically below historical norms.

According to data from the Building Industry and Land Development Association (BILD), with Altus Group serving as its official source for new home market intelligence, 1,018 new homes were sold across the GTA in July 2026.

That represents a major improvement from the record-low 395 sales recorded in July 2025. However, overall sales were still approximately 40% below the 10-year July average of 1,707 sales.

The reason for that gap becomes much clearer when we separate single-family homes from condominiums.

Single-Family New Home Sales More Than Triple

The low-rise market was the standout performer.

There were 781 new single-family home sales in July, compared with just 226 during the same month last year. Even more notably, sales were approximately 50% above the 10-year average for this segment.

Single-family homes in BILD’s reporting include detached, linked and semi-detached houses as well as traditional townhouses, excluding stacked townhouses.

July also marked the fourth consecutive month in which GTA low-rise new home sales outperformed their 10-year average.

So what’s driving the sudden increase?

The HST Rebate Is Playing a Major Role

One of the biggest factors appears to be the HST rebate available to qualifying buyers of new homes.

BILD says the rebate has helped improve affordability and stimulate demand in the low-rise new construction market. Builders have responded to that demand by bringing additional inventory to market, helping keep the sector relatively balanced even as sales have increased.

That’s particularly important in today’s affordability-conscious market.

Buyers aren’t simply responding to headline prices. They’re calculating mortgage payments, taxes, incentives and the overall cost of purchasing a home.

When a government incentive materially changes that equation, buyer behaviour can change with it.

Why Aren’t GTA Condos Seeing the Same Recovery?

This is where the market gets interesting.

Only 237 new condominium apartments were sold across the GTA in July.

That’s actually a 40% improvement compared with July 2025 — but it remains approximately 80% below the 10-year average.

The problem isn’t necessarily that condo buyers don’t want the same tax relief.

BILD says certain rules involving construction start and completion dates have limited the ability of the condominium sector to participate fully in the rebate program.

And because condominium developments typically have much longer planning and construction timelines than low-rise projects, the impact of those eligibility rules can be substantial.

The result is a GTA new construction market moving at two very different speeds.

New Home Prices Are Moving in Opposite Directions Too

The divergence isn’t limited to sales.

In July, the benchmark price for a new single-family home was $1,362,433, representing an 8.5% decline year-over-year.

Meanwhile, the benchmark price for a new condominium apartment was $1,054,938, up 2.5% from a year earlier.

Importantly, BILD notes that these are gross benchmark prices and do not account for any HST rebate a qualifying purchaser could receive.

That creates an unusual situation.

Single-family homes remain more expensive overall, but prices have come down while eligible buyers may also benefit from additional tax relief. At the same time, new condo benchmark prices have risen slightly despite sales remaining historically weak.

GTA New Home Inventory Remains High

There were 18,546 new homes remaining in inventory across the GTA in July, consisting of:

• 12,345 condominium apartments
• 6,201 single-family homes

Based on average sales over the previous 12 months, that represents approximately 36.5 months of total new home inventory.

Again, though, looking only at the overall number doesn’t tell the full story.

The market conditions facing someone shopping for a new detached home can be very different from those facing someone considering a pre-construction condo.

That’s why buyers and sellers need to look beyond broad GTA headlines and understand what’s happening within their specific property type, price range and neighbourhood.

What Does This Mean for GTA Home Buyers?

For buyers, July’s numbers are another reminder that there isn’t really one GTA real estate market.

Different segments are behaving very differently.

The rebound in single-family new construction shows that demand can return quickly when affordability improves and buyers see value.

For condo buyers, slower sales and significant available inventory may create opportunities — particularly for purchasers who have flexibility and are willing to compare projects, incentives and resale alternatives.

However, incentives, rebate eligibility and project timelines can be complicated. Buyers considering new construction should understand exactly what they qualify for before making a decision.

What Does This Mean for the Toronto Real Estate Market?

The numbers also provide an interesting look at how policy can influence housing demand.

Overall GTA new home sales are still well below historical norms, so this isn’t necessarily evidence of a broad new-construction boom.

Instead, we’re seeing a highly segmented recovery.

Single-family new homes are experiencing significant momentum, while the condominium sector continues to struggle.

Whether that gap begins to close will depend on several factors, including affordability, interest rates, government housing policy, construction activity and buyer confidence.

For now, one thing is clear: property type matters more than ever when trying to understand the GTA housing market.

If you’re considering buying or selling in the GTA, understanding what’s happening in your specific segment of the market can make a major difference in your strategy.

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Source

The figures referenced above are based on July 2026 new home market data released by BILD, with Altus Group identified as BILD’s official source for new home market intelligence.

Read the original CP24 report