New data reveals that new home sales were extremely low in April, with Toronto builders expressing concerns that the federal government’s proposed relief for first-time buyers will not be sufficient to revive the market.
The Building Industry and Land Development Association, representing 1,000 member companies in the Greater Toronto Area, stated that new home sales are at record lows, surpassing the downturn experienced in 1990.
In April, there were only 310 new home sales, a 72% decrease from the previous year and 89% below the 10-year average, as reported by BILD’s data analytics partner Altus Group.
Of these sales, 105 were condos and 205 were single-family homes.
In a typical April in the GTA, new home sales would usually reach 2,750 units based on the previous 10-year average.
Edward Jegg, research manager at Altus Group, highlighted that the uncertainty surrounding possible tariffs is hindering buyers’ confidence and decision-making.
Federal measures falling short, industry argues
Despite the federal government’s proposed GST (HST) relief for first-time new home buyers, BILD spokesperson Justin Sherwood believes this is insufficient.
Sherwood expressed that limiting the relief to first-time buyers will have minimal impact since the majority of new home buyers are not first-timers, failing to address affordability or stimulate sales and construction significantly.
To have a more substantial effect, Sherwood suggested that the government should extend the GST (HST) measures to all new home purchases.
Details of GST (HST) policy
As per the government’s announcement, the new measure aims to eliminate GST for first-time home buyers on new homes up to $1 million and reduce the GST for first-time home buyers on new homes between $1 million and $1.5 million, potentially saving first-time buyers up to $50,000.
Open letter to Carney
Simultaneously with the rebate news, industry leaders penned an open letter to Prime Minister Mark Carney, urging for more extensive reforms to tackle market uncertainty. The letter calls for adequate rebate thresholds for high-cost areas and the extension of the GST exemption to all new home purchasers, not just first-timers, among other requests.
Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.
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