Toronto’s new home market posted a sales bounce in May, but context matters. BILD GTA and Altus Group data shows sales hit a multi-year high—against a backdrop of historically weak demand that makes the comparison more flattering than reality. Prices remain in a holding pattern, and builders have quietly abandoned affordable multi-family supply in favour of single-family homes.
Toronto New Home Prices Continue Holding Pattern
Greater Toronto new home prices.
Source: Altus Group.
New home prices continue to hold ground. The benchmark price of a single-family home rose 0.4% (+$5.7k) to $1,427,543 in May, marking a third month higher. It’s strong momentum, but prices remain 5.2% (-$78.0k) lower than last year and 26.2% (-$506.4k) below the record high reached in June 2022.
Condo apartment prices aren’t feeling the same pull. Prices remained virtually flat (+$325) at $1,029,489 in May, though 0.8% (+$8.2k) higher than last year. While prices aren’t rising as fast as single-family homes, they also have less ground to recover—they’re 13.6% (-$162.2k) lower than their 2022 peak.
The price resilience is more complicated than the straight data suggests. BILD GTA uses the Altus New Home Benchmark—an average of list prices that doesn’t account for concessions, incentives, quality, or size. None of those builder incentives you’re seeing in listings are factored in.
Ontario’s HST rebate adds another layer. At least one bank has called it a developer bailout outright—and for good reason. Rather than flowing through to buyers, real estate professionals are noting the rebate is being rolled into prices, with buyers asked to sign it over at closing. Prices end up at roughly the same level as before the rebate existed. It appears the mechanism is also functioning as a loophole to boost appraisal values on paper, after the bank regulator rebuked lenders for, um, being generous.
Toronto New Home Sales Nearly 3x, Still 4th Weakest In 20 Years
Greater Toronto new home sales: May.
Source: BILD; Altus Group; Better Dwelling.
Greater Toronto new home sales nearly tripled last year’s volume at 1,023 units in May, up 196.5% (+678 units). Both segments climbed, with single-family sales up 299.0% (+622) to 830 units sold, while condos climbed 40.9% (+56) to 193 units. Huge growth rates, but the base they’re measured against is more shocking.
Last year was the worst May in over 40 years of data, making any comparison flattering. May 2026 still ranked as the fourth weakest volume for the month in at least 20 years—only 2020, 2024 and 2025 came in lower. There’s improvement, but it’s from a historic floor.
The City of Toronto reported a similar trend, with sales up 83.3% year over year. That grand total works out to 88 new homes sold in the City, with roughly 3 million residents. That sales volume is a good year for some real estate agents, but a really bad year for a whole city.
Toronto New Home Inventory Pulls Back, Still Higher Than Usual
Greater Toronto new home inventory: May.
Source: BILD GTA; Altus Group; Better Dwelling.
Inventory fell to 18,763 new homes for sale in May, down 13.0% (-2,808 units) from last year. It was the second year inventory fell for the month, though close to double 2022’s volume and 37.5% above May 2019. Inventory is firming, but it’s far from being a tight market.
The composition tells a different story. Despite an uptick in single-family sales, that inventory climbed 8.4% to 5,625 units. Condos drove the entire drop, falling 19.8% (-3,246 units) to 13,138 units. Developers paused all condo launches year-to-date, and are waiting for the market to firm.
That pause is happening despite a laundry list of taxpayer-funded incentives, including a break on development fees. Taxpayers are paying more, prices aren’t moving, and new projects have completely stalled. Surely just a coincidence.
Good news, we tripled the sales, we sold 6 units compared to the previous 2. Elbows up !