The housing situation in Ontario is slowly showing signs of recovery. For all the doom and gloom in the media, there are many industry professionals who are still in the race. We 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.

Boost through lower interest rates

That attitude includes doing what we can to reinstill consumer confidence in our industry. In that aspect, we need more action from our governments in the various programs they have proposed. It could start with the Bank of Canada holding steady on rates or even cutting them once more. What a boost that would be this year.

And let’s talk taxes. New house and condominium purchasers shoulder a major tax burden, which contributes greatly to the lack of affordability. For years, those of us in the industry have been asking for reductions in this area. 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.

Timing is of the utmost importance. It takes approximately a decade to complete a housing project in the Greater Toronto Area. Consider everything from buying a piece of land and connecting with municipal planning to create a timeframe for approvals. Then there are aspects, such as architectural design, marketing, sales, construction, labour and supplier issues. This means we need to get additional new house and condominium communities started soon to have supply in ten years. And remember the effect lack of supply has on prices.

Bright side – buyers' market

There is, however, a bright side to all of this. You’ve heard of “a buyers’ market”? We are in one, largely because of 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.

Now is the time to buy new if you are thinking of taking that step. With inventory the way it is, buyers (especially of new condos) will find outstanding prices and more negotiating power than ever before.

Keep in mind that when you buy new, you enjoy the benefits of the Tarion warranty, plus you eliminate the need to repair or renovate a resale home. There are innumerable stories about resale homes needing far more than anticipated to make them livable. Your new digs are move-in ready.

I do applaud our governments’ efforts so far 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. Boosting our industry is good for the economy and everyone concerned.

Year of gradual transition

Looking ahead with optimism, I see 2026 as a year of gradual transition to a better industry and homes market altogether. Remember, too, that the resale homes industry is also expecting a gradual stabilization and recovery this year. Typically, new home markets follow resale in that respect.

Why wait to buy? When the housing market comes back full force, pent-up demand will take over, and it may well become a race again to find the perfect new home. You don’t want to stall until the market offers standing room only. With perseverance, we can all win this race together. I have said it before, and I am proud to say it again: But new and buy now.