Last week the provincial government announced a full HST “holiday” on new homes, effective for agreements signed between April 1, 2026 and March 31, 2027.
For homes priced up to $1,000,000, the HST is fully rebated.
For homes between $1,000,000 and $1,500,000, a rebate of up to $130,000 is available.
Between $1,500,000 and $1,800,000, the rebate is gradually reduced, and it is fully phased out at $1,800,000 to the previous rebate of $24,000.
This program is no longer limited to first-time buyers. It applies to any purchaser who intends to use the property as their primary residence or rent it out on a long-term basis. Short-term rentals (such as Airbnb-style usage) does not qualify.

This is major news for the market, but it’s important to understand that it’s not as simple as just removing 13% from a home’s price.
In most cases, builders have already built the existing $24,000 HST rebate into their pricing. That means a home listed at $1,000,000 typically reflects a true price of about $1,024,000, with the builder assigning the rebate back to themselves on closing and adjusting the advertised price accordingly.
Because of this, the new HST holiday doesn’t automatically translate into a full 13% savings on top of current list prices. Instead, the actual benefit will depend on how each builder chooses to adjust their pricing, whether they pass the savings on to buyers, hold pricing steady, or reposition based on demand.
With that said a home that was previously listed at $1,000,000 (remember it really is $1,024,000) could now be sold by the builder for $894,000 without the builder taking a hit,  assuming the builder passes on the entire savings to the consumer. 

To make things even more interesting for the new construction market, the federal and provincial governments have also announced plans to reduce development charges across Ontario for a three-year period.
In some areas, like Toronto, early indications suggest reductions could be as high as 50%.
That said, this is still evolving. Municipalities across the province will ultimately determine how these reductions are applied, including the timing and the actual amounts. Until those details are finalized, it’s not entirely clear how much of this savings will be passed on to buyers.

What does this all mean for the market? 
For starters, those who entered into new build agreements but haven’t closed, seem to be SOL. I think this will change, and there is a lot of noise about it already. If you are one of those buyers who is in a contract or who recently closed you may want to reach out to your MP/MPP. I know of a few different petitions already being circulated to get changes made to this asap. 

From what I’m hearing within the industry, the early expectation is that builders will pass along the available credits to buyers. The goal being to improve affordability and, just as importantly, help move existing new build inventory.
That said, this will ultimately come down to individual builders and how they choose to position their pricing. Some may pass on the full benefit, while others may adjust more strategically depending on demand and supply. Buyer beware, know your contracts and have these reviewed by your lawyer to ensure you fully understand. I suspect most builders will advertise a lower price which includes all of the credits available, but in the event you as a purchaser do not qualify, you will be the one on the hook for the additional funds. 

I also suspect this will put additional downward pressure on the re-sale market. New homes have always sold at a premium compared to re-sale and with this rebate that gap could close notably. It’s fairly easy as a seller to compete with a builder when their closings are a year or two out, if someone needs a home now, they need it now… but for those builders with ready to go inventory they are going to look very attractive to buyers. For those who have purchased new in the last few years and have struggled to sell your property, this will not be welcome news. 

As someone who represents several builders, I can tell you the past few days have been hectic as everyone works through the details. The government has a “fun” way of making fairly broad announcements without all the specifics, so there’s been a lot happening behind the scenes. We’re actively working through everything alongside our legal teams to ensure the properties we represent are positioned correctly, and ultimately sold at the best possible value for buyers. If you are actively watching any of the developments we have at the River Realty Team, stay tuned as there is more to come! 

New build pricing is shifting quickly, and not every incentive will be as straightforward as it appears.
If you want clarity on how these changes impact specific projects — or want early access to builder inventory and incentives — reach out directly or send us a message. We’re actively working with multiple builders and can give you real-time insight you won’t find online.

In 2025, we took things up a notch by ramping up online engagement for our clients’ benefit. This led to 1,343,800 impressions on the RRT Facebook and Instagram alone. Our website improvements brought in 62,293 unique visitors, averaging 170 people a day.

Why does this matter? The more people see your property—or your buying potential—the higher the chance of getting the best price, the fastest sale, or finding the perfect home. These aren’t just numbers—they directly translate into real results for you. We are truly humbled by these numbers. As a team, we penned 69 firm transactions in 2025—considering the average agent sells fewer than 3 homes a year, that says a lot about our approach. 

When we started the River Realty Team, we wanted to do things differently. Our pink and blue logo reflects that: stand out, get noticed, deliver results. That’s exactly what we show up to do for our clients every single day. If you think 2026 is the year you want to make a move, we’d love to sit down and discuss your options. As a team, we’re constantly refining our systems and strategies to make sure our clients get the very best representation and advice.

We’re gearing up for our best year yet! Want to take advantage of our combined 42 years of experience (yes it matters) we’d love to chat! 

Let’s be honest — the market has changed. One of the biggest challenges we’re seeing right now is pricing, especially when it comes to setting the right price for today’s conditions. Many home sellers are still thinking back to the wild days of 2021 and early 2022, when homes were selling in days (sometimes hours) and prices were climbing at record speed.

But that market doesn’t exist anymore. Depending on how you look at the numbers, home values are sitting roughly 18–25% below the peak we saw during that frenzy.

What’s Happened Since the Peak

The good news is that the market has largely stabilized since mid-2023. Prices aren’t dropping the way they did right after the peak, and most communities have settled into a more balanced rhythm. The pace is slower, buyers are more thoughtful, and while homes don’t sell overnight anymore, good listings are still moving when priced right.

However, if you purchased a home in the second half of 2021 or in 2022, you might find that selling today means accepting a lower price than what you paid. That’s not easy to hear — and as someone who owns real estate too, I understand how frustrating that feels. None of us want to see values dip below what we paid.

The Cost of Living Somewhere

But here’s the thing: living somewhere always costs money. Whether you’re renting or owning, you’re paying to have a roof over your head. Owning comes with mortgage payments, maintenance, property taxes, and insurance. Renting comes with monthly payments that build no equity at all.

If you bought during the peak, you’ve likely spent the last few years enjoying your home, building memories, and paying down your mortgage — all things that still have real value, even if your sale price isn’t higher today.

Why Time Still Matters

Before the 2020-2022 boom, it was common wisdom that you should plan to own a home for 5–10 years before selling if you wanted to build meaningful equity. That old rule of thumb is making a comeback. The ultra-fast equity gains we saw for a short stretch were never meant to be sustainable.

Real estate remains one of the most reliable long-term wealth builders — but it works best when you give it time.

Moving Forward

So yes, the market today looks different than it did a few years ago. But that’s not all bad. A more balanced market gives both buyers and sellers a fairer shot. It rewards realistic pricing, quality presentation, and good strategy — all things that experienced realtors (like us!) focus on every day.

If you’re thinking about selling and want an honest look at what your home is worth right now, reach out. We’ll walk you through the data, the trends, and what to expect — no sugarcoating, just real advice for today’s market.