With 2024 coming to a close, all eyes are on the Bank of Canada as it weighs another potential rate cut on December 11. Further reductions could provide much-needed relief to Canadians grappling with stagnant economic growth, soft employment numbers, and lagging GDP. While government incentives like a two-month GST holiday (starting December 14) and $250 cheques for middle-income earners offer some respite, long-term stability hinges on lowering borrowing costs—a more impactful gift than discounted jigsaw puzzles.

More accurately it isn't simply a tax cut, but rather an irresponsible, inflationist, temporary tax trick, says the leader of the Conservative Party. Some small business owners see the federal GST holiday as little more than an IT and accounting headache. For those using Shopify—the second-largest publicly traded Canadian company—these complexities are automatically managed, ensuring compliance without added stress for entrepreneurs. Shopify’s platform simplifies tax collection, remittance, and reporting, freeing business owners to focus on driving sales rather than wrestling with administrative burdens. They have become a cornerstone for small and medium-sized businesses (SMBs), offering a robust e-commerce platform and tools that streamline operations like payments, shipping, and marketing.

This year’s Black Friday/Cyber Monday weekend highlighted Shopify’s pivotal role in global commerce, with merchants on the platform collectively achieving $11.5 billion in sales. The scale and impact of these transactions were visualized in real time through Shopify’s interactive Live Globe, showcasing the company’s dedication to innovation and transparency. The tracker, still accessible at bfcm.shopify.com, underscores the global reach of Shopify’s entrepreneurial ecosystem.

Greater Vancouver’s real estate market showed signs of improvement in November, with 2,181 properties sold—a 28% jump from the same time last year and a 34% increase over 2022. Although sales fell from October’s peak, this year’s second-half performance suggests steady momentum heading into 2025, particularly as mortgage rule changes take effect. First-time buyers and those seeking insured mortgages will benefit from higher thresholds and extended amortizations, which could spark renewed activity in the spring market. Buyers are also enjoying more inventory than in previous years, though some sellers remain hesitant, keeping prices slightly above market expectations.

Seasonality played a role in November’s 31% drop in new listings compared to October, with 3,784 homes hitting the market. While this figure represents a 10% increase over November 2023, it fell short of pre-pandemic years. Active listings also dipped to 13,245 from October’s 14,477, continuing a gradual decline likely to hit around 10,500 by year’s end. This tightening inventory could pressure home prices in early 2025, especially if new listings fail to keep pace with demand.

Government policies like flipping taxes, however well-intentioned, could further restrict supply. These regulations target a tiny fraction of the market—properties sold within a year—and may deter investors and renovators who otherwise enhance housing stock. Such measures add complexity to an already over-regulated market, potentially sidelining transactions that benefit buyers.

Months of supply remain steady at six overall, with detached homes creeping up to eight months and townhomes nearing a seller’s market at just over three months. Townhomes and condos remain highly sought after, particularly as housing starts decline. The “missing middle” continues to challenge buyers, with limited new construction expected to meet this demand in the coming years.

Real estate insolvencies in Canada are mounting—projected to rise 57% over 2023. Major developers are defaulting on loans, with high-profile projects like The One condo tower in Toronto defaulting on $1.6 billion in loans. Burnaby based Thind Properties has been placed under receivership, with over $300 million of debt spread across several projects comprising 1,800 units. Luxury condos like Alberni by Kuma are being resold at a loss, and the CURV developer is suing a presale purchaser over unpaid deposits. Capital for new developments is getting tighter, despite the Bank of Canada's best intentions. New housing starts are anticipated to fall off a cliff in the year ahead as most housing targets will miss by a wide margin.

Meanwhile, Canada’s rental market is showing the effects of a construction boom, with asking rents in cities like Vancouver and Toronto dropping nearly 10% over the past year. This surge in supply, driven by favorable CMHC financing programs, demonstrates the power of aligning incentives with private-sector capabilities. Housing affordability remains a pressing issue, with homeownership increasingly out of reach for many, leaving rentals as the more viable option for Canadians locked out of the resale market. Despite the initial optimism surrounding rental development, the momentum may be waning. Increasingly, the financial feasibility of new projects is being called into question—not only in the rental sector but also in the pre-sale market—underscoring broader concerns about sustainability in Canada’s housing pipeline.

If you’re looking for a touch of holiday cheer, the Shipyards Christmas Market has just opened in North Vancouver, featuring around 90 vendors in charming wooden stalls. Best of all? Admission is completely free! Founded by John Van Rij of Parfait Productions Inc., the market’s mission is to ensure everyone can enjoy festive activities, regardless of income or social status. Instead of charging entry fees, the event relies on sponsorships for revenue.

This European-inspired festival offers something for everyone, with vendors ranging from cranberry farms and bakeries to pet food stalls. Businesses rotate every 3 to 4 days, keeping the market fresh and exciting. Live stage entertainment, including choirs and busker-style performances, adds to the festive atmosphere.

Open daily until December 24th, the market has already drawn massive interest. Visitors can enjoy seasonal music, skate on the ice rink, admire the City’s Christmas tree, unwind in the Champagne tent, visit Santa’s chalet, and enjoy community performances. Don’t miss indulgent treats like bratwurst, mulled wine, and hot cocoa while soaking in the holiday magic!