Beginning a new year is always a time for reflection and forward thinking.
As the recent and more distant past increasingly dissipate from our minds, reality settles in. The result is better clarity with respect to demand and what new product is actually worth from a buyer’s viewpoint.
The most successful sales programs in 2026 will be based on buyer reality and expectations.
What are buyers prepared to pay, in both price and terms? How to meet the market must be carefully analyzed and executed.
Typically, new product has been priced and sold at a fixed number, while it has long been customary in the resale market to follow the ask-and-bid formula. Given the current buyer’s market, this resale approach has crept into the new-sale world as well.
We foresee Q1 and Q2 of 2026 remaining steady. However, based on what we believe will occur with the U.S. Federal Reserve beginning in June, falling rates may prompt Canada to follow suit in order to protect exporters as the U.S. dollar weakens against the Canadian dollar. As a result, interest rates could drop significantly, signaling a potential market revival.
In the meantime, the message to sellers is clear: price based on reality. The message to buyers is equally clear: when you see the right fit, take advantage of it. Timing a market bottom is always difficult, but our view is that it may occur in Q2 or Q3 of 2026.
Wishing everyone a very happy new year.