Happy New Year!
As we step into 2025, I hope your holiday season was filled with joy, relaxation, and cherished moments with loved ones. From all of us at Mahoney Real Estate Group, I extend my heartfelt wishes for a year of health, happiness, and success.
With 2024 now behind us, it’s clear that last year was a pivotal period for the Greater Toronto Area (GTA) real estate market. The Toronto Regional Real Estate Board (TRREB) has released its 2024 housing data, shedding light on key market trends.
2024 Market Recap
In 2024, buyers and sellers navigated a transitionary market shaped by higher borrowing costs and increased listings. Here’s a snapshot:
- Sales Activity: 67,610 transactions were reported through the MLS, up 2.6% year-over-year, though still below the 10-year average of approximately 90,000 sales.
- New Listings: 166,121 new listings marked a 16.4% increase compared to 2023, providing buyers with greater choice and leverage.
- Average Sale Price: The annual average of $1,116,600 reflected a modest decline of less than 1% from 2023.
- Ground-oriented homes held their value more steadily.
- Condos experienced notable price declines, giving buyers increased negotiating power.
- December Snapshot:
- Sales: 3,359 transactions, down 1.8% year-over-year.
- Average Price: $1,067,186, down 1.6% year-over-year.
- Active Listings: Rose by 20.2%, reaching 15,393, representing a 4.58-month supply heading into January.
While the market adjusted to economic conditions, the future holds promising opportunities.
Economic Optimism for 2025
November’s inflation rate of 1.9%, a level many economists consider ideal, sets a positive tone for the year. With additional Bank of Canada rate cuts expected in their January 29th announcement, borrowing costs may decrease further, enhancing affordability and market confidence.
Exciting Updates for Homebuyers and Homeowners
- Higher Insured Mortgage Price Cap
Effective December 15th, 2024, the insured mortgage price cap has increased from $1 million to $1.5 million, empowering buyers requiring high-ratio mortgage insurance (less than 20% down payment, loan-to-value greater than 80%).
Key Details:
- Eligible Property Value: Must be less than $1.5 million.
- Down Payment Requirements:
- 5% for the first $500,000 of the purchase price.
- 10% for the portion between $500,000 and $1.5 million.
This change offers buyers increased access to higher-value homes while maintaining manageable down payment thresholds.
- Expanded Eligibility for 30-Year Amortizations
The option for 30-year mortgage amortizations has been extended to:
- First-Time Homebuyers purchasing either newly built or existing homes.
- All Buyers purchasing newly built homes, regardless of prior ownership history.
This initiative reduces monthly payments, making homeownership more attainable while supporting buyers of newly constructed properties.
- New Mortgage Refinancing Program
Starting January 15th, 2025, a new program allows homeowners to borrow up to 90% of their property’s “as improved” value, with a cap of $2 million. This applies to renovations that include adding rental units, creating opportunities to:
- Generate Additional Income: Earn revenue from rental spaces.
- Boost Toronto’s Rental Housing Supply: Help address the growing demand for rental units.
If you’re considering such a renovation, this program may be the right opportunity. Speak with your financial advisor or a trusted mortgage broker for details. If you do not have either, here are two top recommendations to reach out to:
Here is a link to learn more:
Chanel Lawrence Chanel Lawrence – Investment Advisor at Royal Bank Plaza
Mark Tamburro Get A Better Mortgage – We Work for you. Not The Lenders.
Government of Canada Mortgage Insurance Rule Changes to Enable Homeowners to Add Secondary Suites – Canada.ca
What This Means for You
These updates, combined with evolving market conditions, provide more flexibility and financial opportunities for buyers and homeowners alike. With home prices below historic peaks and anticipated rate reductions, 2025 presents an excellent time to achieve your real estate goals.
Let’s Make 2025 a Milestone Year in Real Estate
Have questions about these updates or want to explore your options? As your trusted advisor, Mahoney Real Estate Group is here to help you navigate these changes with confidence and clarity.
📧 Sean@MahoneyRealEstateGroup.ca
📞 647-444-6683
🌐 Mahoney Real Estate Group | Toronto Real Estate Experts
Let’s work together to achieve your real estate goals and make this year one of growth and success.
My Commitment to You
With over 15 years of real estate expertise, I deliver proven results even in challenging markets. Guiding countless clients through seamless property transactions, I combine deep knowledge of market trends and local dynamics with a commitment to excellence.
My approach is “transitional, not transactional”—prioritizing your long-term satisfaction over short-term gains. I am dedicated to empowering you with insight, strategic advice, and unwavering support throughout your real estate journey. Your goals are my mission, and I’m here to help you achieve them—now and in the future. Reach out for trusted guidance and exceptional results!
Let’s have a call! https://calendly.com/sean-mahoneyrealestategroup/30min
Respectfully,
Sean Mahoney – Founder
Mahoney Real Estate Group