New home sales in Ontario surged 130% in Q2 to 8,410 units after an enhanced HST rebate took effect, mainly boosting low-rise housing sales, which doubled year-over-year and exceeded the 10-year average. Condo sales rose 12% but remain 88% below the decade norm. The rebate offers up to $130,000 in tax relief on new homes purchased before March 31, 2027. Despite the rebound, overall sales are below historic levels, hindered by high municipal fees, long approval delays, and restrictive zoning.