New home sales in Ontario surged 130% year-over-year in Q2 2026 after the provincial government cut the 13% Harmonized Sales Tax (HST) on new homes. Sales rose from 3,645 to 8,410, mainly driven by single-family homes. Condo sales increased slightly but lagged due to strict rebate eligibility timelines. The HST rebate, offering up to $130,000 off homes under $1.5 million, aims to boost housing starts, jobs, and economic growth before ending in March 2027.