Did you know that if you assign the numbers 1 to 26 (in order) to the letters of the alphabet, the word "attitude" adds up to 100 per cent?

We reached a historic low in new home sales in 2025, but those of us industry professionals who have patiently weathered the dip, and who realize that real estate is a cyclical business, have higher hopes for 2026.

The Bank of Canada just maintained our key interest rate at 2.25 per cent, which is incredibly low compared to what we experienced in the 1980s and 1990s. And remember that back then, those who found strategies to cope with cyclical lows came out ahead in the long run.

This year can be an industry turning point, if consumer confidence is instilled with government help. If not, up to 100,000 jobs in the trades, development, construction and a variety of housing services are at risk. Housing holds a mirror up to the economy, so dealing with this situation is crucial to our economic health.

The fact the Bank of Canada held steady on our current rate is good news, but much more effort is needed on the part of our governments.

Tax burden remains a major impediment

For example, the tax burden shouldered by new house and condominium buyers is huge and unfair. That represents a substantial portion of the lack of affordability everyone is talking about.

Builders, developers and other industry professionals have been asking for tax reductions for ages. Frankly, a major step forward would be for both our federal and provincial governments to provide full HST relief for all new home purchasers.

The Building Industry and Land Development Association (BILD), which advocates for housing and development policy, has called on our governments to do just that. 

We are seeing some positive steps by the federal government, especially where affordable rental housing is concerned. The Build Canada Homes agency is encouraging banks and pension funds to get involved with financing affordable housing projects to stimulate activity across the building of dwellings representing the spectrum of rents.

It is, however, the private sector that will be required to lead most of the construction to meet the Liberals’ homebuilding targets. Attracting capital for this purpose will depend largely on minimizing risk with affordable housing projects. It is a complicated problem that requires a complex solution.

It is reassuring, however, the federal government is focusing on potential solutions.

How long will the buyer's market last?

Despite all the negative media coverage, we are experiencing a “buyer’s market” largely because of condominium inventory. During Q4 2025 and the beginning of Q1 2026, the GTA housing market has showed increasing inventory levels, especially for condos.

At the end of October, the combined inventory level in the GTA sat at around 22 months, as very little inventory had been added during 2025. This was the highest inventory level seen to that date.

Savvy real estate professionals are encouraging potential condominium purchasers to buy now. With inventory the way it is, they will find outstanding prices and have more negotiating power than ever before.

Timing, however, is of the essence.

We know it takes about 10 years (sometimes more) to complete a housing project in the Greater Toronto Area. First, developers have to secure a piece of land, then interact with municipal planning to create a timeline for approvals. This level of red tape is one of the major problems with housing delays.

Then, consider architectural design, marketing, sales, construction, labour and supplier issues, etc. This means we need to get additional new house and condominium communities started soon to have supply in 10 years. And remember the effect that lack of supply has on prices.

The housing sector has huge economic impact

Our governments have initiated action in areas such as improving and expanding infrastructure to handle increased populations. But we need more government intervention soon to ensure we have enough houses and condominiums to accommodate more people.

In addition, the housing sector in Ontario traditionally supports 225,000 jobs and generates $30 billion in economic activity. As I mentioned above, boosting our industry is good for the economy and everyone concerned. 

We in the industry remind potential new house and condo buyers that purchasing new means they enjoy the benefits of the Tarion warranty, plus they eliminate the need to repair or renovate a resale dwelling. There are innumerable stories about resale houses needing far more than anticipated to make them livable.

New houses and condominiums are move-in ready, which is a huge benefit.  

I look ahead with optimism. I see 2026 as a year of gradual transition to a better industry and homes market altogether.

Remember, too, the resale homes industry is also expecting a gradual stabilization and recovery this year. Typically, new home markets follow resale in that respect. 

The housing situation in Ontario is slowly showing signs of recovery. We in the industry plan on a slow and steady win, with perseverance giving us a head start on the competition.

Those of us who put our heads down and came up with strategies to deal with the current market will find redemption in the end. I have often commented on the amazing resilience of our new house and condominium market.

We are starting this new year with a new "attitude!"