December 2024 Newsletter

Thurston Olsen Real Estate Group

Hey Friends!

As 2024 comes to a close, we want to take a moment to say THANK YOU to each and every one of you for helping to make 2024 an incredible year in real estate for the TO Group. Your trust, support, and referrals have made all the difference, and it’s been an absolute privilege helping you and your people navigate the Toronto market.

From finding dream homes to building wealth through smart investments, we’re grateful to be part of the journey.

Here’s to an even brighter 2025—cheers to you and your families!

Now, let’s take a few minutes to give you another Real Estate update for December 2024.

Mark Your Calendars! The Bank of Canada Makes Their Next Rate Announcement on December 11th

The Bank of Canada is set to announce its final interest rate decision of the year on December 11th. This will set the tone for borrowing costs heading into 2025, with impacts on mortgage rates and affordability. Many are speculating that the overnight rate will decrease by either 0.25% or 0.5%. This will directly affect those who have or will be going for variable rate mortgages.

It will be interesting to see what happens with the fixed rates as they follow the bond yields and are not as directly related to the Bank of Canada overnight rate as the variable rates are. The election of Donald Trump in the USA will have some effect, but as long as we continue to see weaker economic information from Canada (ie. increased unemployment rates) the fixed rates have a good chance of staying low.

If you’re up for renewal in the next year or two, it never hurts to reach out to a mortgage broker to discuss options.

Need a recommendation? We have some great mortgage partners that are here to help. Just ask!

Reminder! Bold Mortgage Reforms: Making Home Ownership More Accessible in Canada

Exciting mortgage policy changes take effect on December 15th, offering new opportunities for buyers:

  • 30-Year Amortizations for First-Time Buyers & New Builds: Lower monthly payments mean improved affordability, but higher overall interest costs.
  • Higher Purchase Threshold for Minimal Down Payments: Buyers can now put less than 20% down on homes priced up to $1.5M (up from $1M), though carrying costs remain significant.
  • Easier Lender Switching: Insured mortgage holders can renew with a different lender without a stress test, encouraging better rate competition.

These reforms aim to make buying a home easier but may also increase market competition and boost prices. We anticipate that this will have the biggest effect on homes in the $1M-$1.3M range. We see a huge opportunity for multi-unit homes where buyers can buy with less down and can supplement the higher costs of borrowing with rental income.

What We Are Seeing From the Field

The Toronto housing market is heating up as home sales surged by 39.1% year-over-year in November 2024. Buyers are jumping in, thanks to reduced borrowing costs and favorable market conditions, while new listings increased by a modest 4.2% compared to November 2023. However, this imbalance tightened market conditions, nudging the average home price up 2.8% year-over-year to $1,080,167.

Key Highlights:

  • Home Sales: 2,236 homes sold in November, with single-family detached homes driving much of the price growth.
  • Listings: 4,360 new listings entered the market, showcasing more opportunities for buyers.
  • Condo Market: While prices remain just below last year’s levels (down 1%), ample choice gives condo buyers strong negotiating power.

What’s Ahead?

With population growth fueling housing demand and borrowing costs trending lower, experts anticipate a robust market recovery in 2025.

This upbeat market trend hints at exciting times ahead. Whether you’re looking to buy, sell, or invest, now’s the time to plan your next move!  Let’s Chat

Shout Out To A Local Business

In The Beach – Landscape Maintenance Specialists

Getting tired of staying on top of lawn maintenance, fall clean-ups, and snow removal? For some of us, life gets busy and exterior home maintenance tends to take a back seat. Why not consider hiring a trust-worthy professional and LOCAL company to help you protect your greatest investment, your home?

Our friends at In The Beach are a friendly and professional crew that focus on quality, dependability, and respect for their clients.

Book your seasonal services now and let the pros handle the hard work while you stay cozy indoors. Contact them today to secure your spot and make sure you mention that The TO Group sent you!

Thank You for Making Our Holiday Season Food Drive a Huge Success!

(We may need a bigger truck for the next one!)

Thanks to the incredible generosity of many, our East Side Food Drive Holiday Season food drive in support of the Daily Bread Food Bank was a huge success—our most rewarding one yet!

We couldn’t have done it without you! Every donation made a real difference for families who needed it most. A heartfelt thank you to everyone who contributed.

Let’s continue making an impact together!

As always, we’re here for any real estate services or advice you, your family, or friends might need. Whether it be next week, next month, or next year, it’s never too early to have a chat regarding real estate plans. Feel free to introduce us—we promise to make you look great! ?

Cheers!

Chris and Ford