Poilievre plan would boost new home sales: Local builders

Local contractors react to Conservative plan Some contractors are welcoming the Conservative party's new plan. CTV London's Sean Irvine explains.

A Conservative plan to remove the federal sales tax on new homes under $1 million is welcomed by some local builders and contractors.

Conservative leader, Pierre Poilievre’s, concept would come at the expense of current Liberal housing infrastructure plans. But some local builders believe the cost may be worth it.

Among them is Mason Sibley. On Tuesday, the owner of MKS Construction was busy sheathing the roof of a new home in southeast London.

A familiar scene during the pandemic housing boom, it is a less common sight today.

“We're still going. But it's just the craziness that was two or three years ago has died down for sure," Sibley shared with CTV News London.

As work slowed down, so did sales. Houses are still moving, but some models sit on the market even with incentives.

If elected in the next election, Pierre Poilievre’s plan to scrap the federal tax on new homes would drive more people into the market, according to the head of the London Home Builders' Association, Jared Zaifman.

“Now people will be able to get back into the market,” said Zaifman.

“It's going enable our builders to start building again in a more substantial way.”

Combined with lower interest rates, the Conservatives contend that a buyer of a $800,000 home would save $40,000.

Zaifman believes that’s enough to boost building by 10 to 20 per cent in the short-term.

He predicts the policy would drive more builders into the sub-million-dollar housing market.

“We will certainly see probably a number of our builders continue to build at this level, where it's $1 million below, and likely a number of our builders that maybe hadn't done as much of this, start to engage in this,” he said.

The head of the Ontario Home Builders Association wants governments to take things one step further. He's pushing for the province to remove sales taxes from new homes as well.

While politics will ultimately factor into the bottom line for home buyers, Zaifman argued the best time to buy a new or resale home remains the present, even if federal taxes are cut down the road.

“Now is certainly a good time, where prices are a bit depressed,” said Zaifman.

“And as interest rates go down, we're likely going to see a competition for demand for new homes continue to go up.”