November 2024 Newsletter
Thurston Olsen Real Estate Group
Hey Friends!
Halloween is in the rear-view mirror and All I want For Christmas Is You by Mariah Carey is back on the radio on repeat and that can only mean one thing: we must be in the home stretch for 2024!
Let’s take a few minutes to give you another Real Estate update for November 2024.
New Government Program: Unlock Your Home’s Equity to Build Secondary Suites
The Government of Canada has launched a new initiative designed to help homeowners tap into their home equity and contribute to addressing the lack of housing.
Starting January 15, 2025, Canadian homeowners will be able to access up to 90% of their property’s value to build secondary suites. This move is a big deal in the ongoing effort to boost housing supply and improve affordability.
Here’s a quick, easy-to-digest breakdown of the program’s key details:
How Does It Work?
Maximum loan-to-value (LTV): The LTV ratio can be up to 90% of the “as improved” property value, with the total property value capped at $2 million.
Amortization period: Borrowers can spread payments over up to 30 years, making the financial hit a bit more manageable.
Number of units: Homeowners can add up to four units on their property, including the existing one.
Self-contained units: Each secondary suite must (among other things) be a fully self-contained unit, meaning it has separate living facilities, such as a private entrance, kitchen, and bathroom. This helps to ensure compliance with municipal zoning requirements.
No short-term rentals: Sorry, Airbnb fans—these additional suites must be used for long-term rentals only.
Will This Actually Help Toronto’s Housing Crunch?
We’re all for creative solutions that empower homeowners and add much-needed housing. But let’s be real—is this just a convenient political move ahead of the 2025 elections, or will it genuinely make a difference in cities like Toronto, where housing demand keeps climbing?
What are your thoughts? Is this policy the game-changer we need, or just a flash in the pan?
What We Are Seeing From the Field
October brought a serious boost of energy to the Toronto real estate market, with home sales shooting up by a significant 36.7% compared to last year! Sales were clocked at 2,509, while new listings crept up by 5.1%. The result? Tighter market conditions and a bit more excitement in the air.
So, What’s Driving the Market?
The Bank of Canada’s rate cuts have attracted more buyers back to the market, thanks to better affordability and steady home prices. Translation? Buyers are feeling more confident, and the market is heating up!
Despite the hype, there’s still plenty of inventory on the market – especially in the condo market, which is keeping price growth in check (for now). But we don’t expect this to last forever. As inventory gets scooped up and construction struggles to keep pace with Toronto’s booming population, we could see prices ramp up by spring 2025. So, keep an eye out!
Policy Talk: Can Affordability Improve?
TRREB CEO John DiMichele is rooting for some policy shifts, especially the Conservative Party’s plan to nix the GST on new homes under $1 million. It’s a step in the right direction, but DiMichele suggests a smarter phase-out system for homes priced between $1 million and $1.5 million—especially for high-cost markets like the GTA and Vancouver.
What Does This Mean for You?
The market is evolving, and spring 2025 could bring some price hikes. Whether you’re buying, selling, or just curious, stay tuned for more updates.
Check out the October year-over-year stats below for more information on the current market. If you would like statistics specific to your neighbourhood, an updated Comparative Market Analysis for your home, or help deciphering what the numbers could mean for you, please let us know and we would be happy to provide that for you.
Thank You for Making Our Thanksgiving Food Drive a Huge Success!
At the TO Group, we’re deeply committed to supporting those in need within our community.
Thanks to your incredible generosity, our Thanksgiving 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.
What’s Next?
Get ready for our East Side Food Drive: The Holiday Edition! We’re gearing up to spread even more holiday cheer. Stay tuned for details on how you can help us make the season brighter for our community members.
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. Feel free to introduce us—we promise to make you look great!
Cheers!
Chris and Ford
