Private equity firm Birch Hill completes purchase of Rexall and Well.ca

Rexall, Well.ca sold

Photo: The Canadian Press

A Rexall drugstore is shown in Ottawa, on Wednesday, March 2, 2016. THE CANADIAN PRESS/Justin Tang

Toronto-based private equity firm Birch Hill Equity Partners has completed its acquisition of the Rexall Pharmacy Group.

Birch Hill acquired the drugstore chain from previous owner McKesson Corp. in a transaction that closed Dec. 30, according to documents filed with the federal Competition Tribunal.

Financial terms of the deal, which was first announced in September, have not been disclosed.

Rexall operates 385 pharmacies across Canada and employs about 8,000 people.

As part of the deal, Birch Hill also acquires Texas-based McKesson's Well.ca business, which offers more than 40,000 health and wellness products online.

McKesson says divesting Rexall and Well.ca will allow it to focus on expanding its oncology and biopharma growth platforms.

New year, new budget: A step-by-step guide on how to refresh your finances

New year, new budget

Photo: The Canadian Press

Canadian $100 bills are counted in Toronto, Feb. 2, 2016. Once your financial goals are set, it can be helpful to set a reminder to review them regularly. THE CANADIAN PRESS/Graeme Roy

A simple copy and paste of your 2024 budget isn't enough to help you achieve your goals and maximize your finances for the new year, experts say.

"Things don't stay the same. Prices keep going up," said Jessica Morgan, founder of financial literacy site Canadianbudget.ca.

"You want to go into (the) new year with a new plan," she said. That means auditing and budgeting.

"First, you have to look back on the year that we've just concluded," she said. "Take a look at your spending for insights."

Tracking spending patterns in your current budget can provide insight into the coming year. But if you haven't started tracking everyday spending yet, Morgan suggests going back to review your bank and credit card statements.

An audit on all subscription costs is next on the list.

"Services that you subscribe to are probably raising their fees," Morgan said. "It's a good idea to take a look at what you already are paying for and what you're subscribed to."

Janine Rogan, a chartered professional accountant and CEO of the Wealth Building Academy, agrees. "We somehow end up subscribing to probably more things than we actually need."

Negotiating any bills such as cellphone plans, bank fees, or insurance costs can also help lower your expenses, Rogan said. But if you can't negotiate, she suggested "looking at ways to add value," such as adding more data to an existing phone plan.

The review stage sets you up for the next step: setting new goals.

"What do you want to enjoy and accomplish this year and how much money do you need to pay for that?" Rogan said.

For example, if the goal is to have a maxed-out tax-free savings account — which has a renewed contribution limit of $7,000 for 2025 — dividing that amount across 12 months will make it achievable.

"That's $583 a month," Rogan said.

That savings method can apply to any other financial goal — a vacation, buying a new vehicle or even starting to plan for the next holiday season.

"Automating it and making it happen in small chunks early on can be really valuable," Rogan said.

There's one more "unfun" piece of preparing for a smoother financial year, she said: Figuring out if you will owe money for income taxes.

To get a rough estimate, she suggested taking the final paystub of the year, which should include a breakdown of your yearly salary, and putting the amount into a tax calculator.

"It will give you a good estimate of whether or not you're going to owe," Rogan said.

"I tell people to do this early in January so that come April 30, you're not scrambling to pay thousands of dollars (and) you've had four months to save up," she said.

Saving for tax time is especially important for freelance workers and others who don't have tax automatically withdrawn by their employer.

For budgeting, Rogan said it's important to be holistic and look at money overall on either a quarter-to-quarter basis or an annual basis — allowing more room for flexibility, and ebbs and flows in cash flow, rather than setting a strict weekly budget.

"You might have extra income one month, you might have extra expenses the next month and sometimes, those things are unexpected," she said.

"We can't plan for them but sometimes, we can take that yearlong look at a spending plan."

That still requires a routine check on the budget weekly, biweekly or monthly — whichever works for you.

A budget or finance buddy can also help you stay on track with your goals, experts say.

Kelley Keehn said she often schedules financial check-ins with her spouse on bigger goals.

"What I do with my husband at the year is, we go, 'What are all the things we need to do financially?' said Keehn, a financial educator and founder of Money Wise Workplaces.

"Maybe we need to set goals. And we just drink some wine and write everything down," she said.

Once the goals are set, Keehn sets reminders every few months to revisit them.

Even if there's no time on the day it's scheduled for, Keehn said at least the task would not get lost in the noise or feel so overwhelming — and can be rescheduled for a future date.

While it's never too late to start tracking money, Morgan said it's becoming more important to do so as the cost of living keeps going up.

Most people feel motivated at the beginning of the year, she said. So, she suggested picking a method that works for tracking money — an app, spreadsheet, computer software or simply pen and paper — anything that "fits into your everyday life."

She added: "It's a pre-emptive step to make things easier throughout the year with your finances. I would say it's a great time to get started."

It's called the 'Winter Arc.' And for some, it's replacing New Year's resolutions

It's called the 'Winter Arc'

Photo: The Canadian Press

FILE - Jacob Bullard leaps in the air as part of a physical therapy exercise at WashU, Dec. 16, 2024, in St. Louis. (AP Photo/Jeff Roberson, File)

A new year is the time to set new goals. Yet studies have shown that most people don’t tend to uphold their New Year’s resolutions much past the first month.

In an attempt to reframe the thinking around new year goal-setting, a new wellness trend has popped up online. It’s called the ’Winter Arc.’

Here’s what to know.

What is the Winter Arc?

The goal-setting challenge was created online by fitness and wellness influencers, so there isn’t a one-size-fits-all approach or standard definition. There are over 400,000 posts on Instagram with the caption #winterarc, and almost 600,000 on TikTok.

For many of those trying the trend, the Winter Arc involves utilizing the cold, dark earlier months of winter to turn inward and get a jump start on their goals, with the intent of having them in place by the time Jan. 1 rolls around.

It’s also meant to encourage participants to be extremely disciplined and rigid with their goals since it’s a shorter period to get them done rather than an entire year, or indefinitely.

Laura Galebe, an influencer and the self-proclaimed “CEO of Glowup Series,” posts videos to her social media accounts talking about her Winter Arc experience. She used the time to commit to “walking every day, journaling, and sticking to (her) skincare and wellness routines.”

“I found it very transformative both mentally and physically,” Galebe says. “The consistent movement helped me stay energized and the structure made the season feel a lot less heavy.”

How can you participate?

Although some say the Winter Arc challenge can begin in October, it’s never too late to start. According to Alex Rothstein, an exercise psychologist with the New York Institute of Technology, the best way to dive in is to carve out time each day to work on your goals.

“If you make sure to actively plan and schedule each commitment," Rothstein says, “you will have an easier time adhering to the program.”

He also recommends setting reasonable, realistic goals that are achievable from day to day. “Recognize that if unforeseen circumstances cause you to miss a day or miss a specific goal in a day, it does not mean you failed the entire process,” he says. “You should be willing to pick up where you started the next day.”

Galebe recommends finding ways to make fitness “cozy and convenient” in the cold winter months.

“If the thought of heading to the gym in freezing weather is demotivating, consider at-home workouts or joining a heated indoor Pilates or yoga studio,” she says. “Another tip is to reframe movement as self-care. Winter is tough on your body and mind so I treat my walks or workouts as part of keeping my overall mental and physical health in check.”

To recap:

—Set realistic, attainable goals.

—Plan out your routine and find the time in your schedule in advance.

—Be okay with missing a day, giving yourself the space to pick up where you left off.

—Find cozy and convenient ways to stay active in the colder months.

What’s the point?

Elliot Berkman, a professor of psychology at the University of Oregon, says that goal progress, rather than simply goal attainment, is psychologically beneficial. He says it can provide “positive emotion, a sense of purpose and meaning as well as agency and autonomy.”

When it comes to goal-setting in a short, specific period of time, like the Winter Arc, he says those parameters can be helpful. “Putting a time bound on a goal can improve the chances the goal is achieved. It’s easier to maintain motivation if you know that you get to stop at some point as opposed to feeling like you need to keep up the hard work indefinitely, which can be demotivating.”

Some on social media have made comparisons between short-term fitness challenges and crash diets, with the idea being that once the challenge stops, one could return to unhealthy habits. But experts say that’s not necessarily true.

“If the challenge is used to help establish new and healthier habits for long term health and wellness, then the challenges are exceptionally useful to help guide and motivate to create these changes,” Rothstein says. He recommends making a plan toward the end of the challenge to continue keeping up with your goals in an attainable and realistic way.

Small businesses brace themselves for potentially disruptive TikTok ban

Bracing for TikTok ban

Photo: AP

FILE - A TikTok sign is displayed on top of their building in Culver City, Calif., on Dec. 3, 2024.  

A looming TikTok ban could affect the millions of small businesses that use the short-video social media app to help them grow their business.

Desiree Hill, owner of Crown’s Corner Mechanic in Conyers, Georgia, started her business solo as a mobile mechanic. Sharing videos of her work on TikTok helped spread the word and she became so popular she was able to open a 9,000 square foot brick and mortar shop with five employees 18 months ago.

“Every day I get at least two to three customers that have seen me on TikTok, watched my videos and wanted to become a customer,” she said.

Though TikTok has been around only since 2016, small business owners use the platform in a variety of ways, from growing a customer base to advertising and marketing, as well as selling goods directly from the site.

According to TikTok's own estimates, small businesses on TikTok would lose more than $1 billion in revenue in a single month if the ban goes into effect.

The Justice Department ordered the app's China-based parent company, ByteDance, to sell TikTok or face a U.S. ban by Jan. 19, citing security concerns. The Supreme Court will take up the matter in January. President-elect Donald Trump, who takes office Jan. 20, has asked the Supreme Court for a delay.

If a ban does occur, small businesses will have to migrate to other platforms to find their customers. Instagram Reels, SnapChat and YouTube Shorts are alternatives. The good news is brands likely already have a presence there. But it may be harder to reach teens that have made TikTok their preferred social media app.

Another alternative is to build a strong database of customers that opt in to providing contact emails or phone numbers. That lets owners reach out directly to customers with promotions and other marketing messages.

But Crown Corner Mechanic's Hill said she is worried that other sites may not have the reach that TikTok does. She has a presence on YouTube, Instagram and Facebook, but it's not the same, she said.

“I am worried because there is no preparation for this,” she said. “It holds such a significant place in regards to my customer base and how I reach customers that if I lose TikTok, I will lose a large part of my business or I will lose my ability to grow anymore.”

Crystal Lister is the owner of Mommy and Me: The Listers, in Cypress, Texas, which offers interactive workshops about STEM education. She's working on pivoting to YouTube for videos and Instagram Reels for teasers to direct people to YouTube, but said TikTok is easier.

“It is going to be a challenge if TikTok is banned because we’re losing kind of all the functionality you want — the ability for a video creation, the ability to spread the word via social media,” she said. “So we’ll have to use many other platforms to supplement what TikTok did in one.”

S&P/TSX composite down, U.S. markets also fall in broad-based pullback

Stock markets take a fall

Photo: The Canadian Press

Bank towers are pictured in the financial district in Toronto, Friday, Sept. 8, 2023. THE CANADIAN PRESS/Andrew Lahodynskyj

Canada's main stock index suffered a broad-based pullback on the final Monday of 2024, while U.S. markets also fell.

The S&P/TSX composite index was down 175.81 points at 24,620.59.

In New York, the Dow Jones industrial average was down 418.48 points at 42,573.73. The S&P 500 index was down 63.90 points at 5,906.94, while the Nasdaq composite was down 235.25 points at 19,486.79.

The retreat was not unexpected, said Brianne Gardner, wealth manager and financial advisor with Velocity Investment Partners at Raymond James Ltd.

Markets had surged in the run-up to Christmas – a textbook “Santa Claus rally” – so some degree of correction was likely, she said.

“It wouldn't surprise us if we did see the markets kind of take a breather, take a pullback, even leading into 2025,” Gardner added.

“I think the end of the year, end of this week, might be a little bit more volatile as well.”

On the TSX, the biggest losses were sustained in the tech and materials sectors. Only the energy sector finished the day in positive territory Monday, helped along by benchmark oil prices that ticked higher in part due to last week’s news of larger-than-expected drawdowns of U.S. crude stocks.

Monday's market weakness came on the second-last day of trading in what was an extremely strong year for financial markets. In 2024, North American benchmark indexes saw gains across the board, with some — including the S&P/TSX composite index — hitting all-time highs during the year.

Gardner said in spite of the end-of-year pullback, investor sentiment remains high heading into 2025.

"I think we're seeing a lot of the positive trends carry over from 2024. We're seeing interest rates being cut across the board both in Canada and the U.S., and we also have those U.S. election results in, which is igniting pro-growth policy expectations into 2025," she said.

"Again, this does kind of set the conditions for equity prices to move higher."

Markets got a major boost in 2024 thanks to cooling inflation throughout the year, which led central banks in both the U.S. and Canada to cut interest rates. Lower interest rates ease borrowing costs for companies and fuel more economic growth.

South of the border, the U.S. Federal Reserve cut interest rates three times in 2024, but has signalled a more cautious approach heading into 2025 amid stubborn inflation and worries about it reheating.

In Canada, where economic growth has been slower than in the U.S., the central bank is likely to continue on its rate cut trajectory, Gardner said.

While interest rates took centre stage for much of 2024, investors at the end of the year are also watching closely for policy changes and economic implications related to next month's return of Donald Trump to the White House.

Many eyes will also be on corporate earnings when companies begin to file their fourth-quarter financial reports in the new year. Analysts expect strong earnings from U.S. corporate heavyweights, supported by that company's growing economy and strong consumer spending.

North American markets will be closed on Wednesday for the New Year holiday.

The Canadian dollar traded for 69.55 cents US compared with 69.37 cents US on Friday.

The February crude oil contract was up 39 cents at US$70.99 per barrel and the February natural gas contract was up 56 cents at US$3.94 per mmBTU.

The February gold contract was down US$13.80 at US$2,618.10 an ounce and the March copper contract was down three cents at US$4.09 a pound.

Stock market today: Wall Street opens lower in final days of a banner year for US stocks

Wall Street opens lower

Photo: AP

FIL:E - The New York Stock Exchange is shown in New York's Financial District on Dec. 23, 2024.  

U.S. stocks are opening lower as a strong year for the market looks set to end on a sour note.

The S&P 500 was down 1.3% early Monday. With just two days left in 2024, the benchmark index still on track for its second straight yearly gain of more than 20%.

The Dow Jones Industrial Average fell 534 points, or 1.2%. The Nasdaq composite fell 1.5%. Declines in Big Tech companies like Apple and Microsoft weighed on the market.

Boeing fell after one of its jets skidded off a runway in South Korea, killing 179 of the 181 people aboard.

AP’s earlier story follows below.

Wall Street retreated in light premarket trading Monday as the year draws to a close lacking the euphoria that pushed markets to record highs in 2024.

Futures for the S&P 500 slipped 0.4% before the bell, while futures for the Dow Jones Industrial Average fell 0.3%.

South Korea’s Kospi dropped 0.2% to 2,399.49 and shares of Jeju Air Co., a low-cost South Korean airline, lost 8.7% after one of the company’s Boeing 737-800s skidded off a runway, slammed into a concrete wall and burst into flames Sunday, killing 179 of the 181 people aboard. Authorities were investigating why the aircraft’s landing gear failed to deploy.

The disaster was yet another blow for Boeing following a machinists strike, further safety problems with its troubled top-selling aircraft and a plunging stock price. Its shares fell 3% in premarket trading and have declined more than 30% this year.

Despite some post-Christmas sluggishness, U.S. financial markets are moving closer to another standout annual finish. The S&P 500 is on track for a gain of around 25% in 2024. That would mark a second consecutive yearly gain of more than 20%, the first time that has happened since 1997-1998.

The gains have been driven partly by upbeat economic data showing that consumers continued spending and the labor market remained strong. Inflation, while still high, has also been steadily easing.

The stream of upbeat economic data and easing inflation helped prompt a reversal in the Federal Reserve’s interest rate policy this year. Expectations for interest rate cuts also helped drive market gains. The central bank recently delivered its third cut to interest rates in 2024.

In Asia, Tokyo’s benchmark Nikkei 225 index ended 1% lower, at 39,894.54. The last trading session of the year ended on a somber note with the Japan Exchange Group's CEO Hiromi Yamaji apologizing during the traditional yearend ceremony over a recent insider trading case.

“I acknowledge trust towards the market is essential for investors to trade with confidence," Yamaji said. The exchange is working to improve training and verify findings of an independent investigation, he said, adding that “we are doing are our utmost best to rebuild trust and prevent this from happening again.”

In early European trading, Germany’s DAX inched back 0.1%, the CAC 40 in Paris was up 0.2% Britain’s FTSE 100 was unchanged.

The Hang Seng in Hong Kong lost 0.2% at 20,041.42 while the Shanghai Composite index gained 0.2% to 3,407.33. Australia’s S&P/ASX 200 dipped 0.3% to 8,235.00.

U.S. benchmark crude oil gained 28 cents to $70.88 per barrel. Brent crude, the international standard, picked up 20 cents to $73.99 per barrel.

The dollar was trading at 157.55 yen, while the euro rose to $1.0445.

Value-seekers drove 2024's retail trends and dead ends

Retail trends and dead ends

Photo: The Canadian Press

This combination image shows signage of Chipotle restaurant Feb. 8, 2016, Walmart store, in Walpole, Mass., Sept. 3, 2019, McDonald's restaurant on April 29, 2024, in Albany, Ore., a Target store sign is shown in Amherst, N.Y., Aug. 18, 2009. (AP Photo)

Value was in vogue in 2024.

Shoppers and restaurant patrons in the U.S. were choosy about where and how to spend their money as they wrestled with high housing and food prices.

Well-heeled customers traded down to Walmart and Aldi. Diners opted for fast food or home cooking instead of sit-down restaurants. Department stores struggled as buyers shopped online or at cheaper chains like H&M.

Residents also moved away from buying furniture or investing in expensive renovations, opting to refresh their homes with inexpensive items like frames and candles.

Those shifts changed the buying and eating landscape in 2024. As of Dec. 20, Coresight Research tracked 48 retail bankruptcies in the U.S., compared with 25 during the same period a year ago. And at least 22 restaurant chains filed for bankruptcy this year, the highest number since 2020, according to BankruptcyData, a company that tracks filings.

Here are some of the trends – and dead ends – that The Associated Press tracked in 2024:

WINNERS:

WALMART

The nation’s largest retailer typically shines during tough times as shoppers turn to the discounter for groceries, which account for 60% of Walmart's total business. And just like during the 2008 Great Recession, Walmart saw households with incomes of $100,000 or above making up more of its clientele. But this time around, company executives think they can keep those customers because they’ve expanded online services and added more stylish clothes and mannequins.

AMAZON

Online juggernaut Amazon leaned into its reputation as a destination for deals to appeal to bargain-hungry buyers. In November it launched Amazon Haul, a new low-cost storefront featuring electronics, apparel and other products priced under $20. And the company said its Prime Day event in July resulted in record sales. But Amazon could face headwinds in the coming year with threatened tariffs on products from China and labor unrest in the U.S.

FAST CASUAL CHAINS

It was a good year for restaurant chains like Shake Shack that are a step up from fast food but still offer good value. Cava, which specializes in fresh Mediterranean food, said its revenue surged more than 33% in the first nine months of this year as it rapidly built new restaurants. Chipotle got some heat from value-conscious diners about smaller portions, but drew customers back after retraining workers to ensure “consistent and generous” portions.

JEANS SELLERS

The wide-leg jeans silhouette – the “it” style that rapidly replaced boot-cut and skinny jeans – drove sales across many different retailers this year. Macy’s, Abercrombie & Fitch, Levi Strauss, Gap and Stitch Fix were among those citing the trend as a big sales booster in recent months. Value-conscious buyers could snap them up at Walmart for $29. At the high end, Gucci had wide-leg versions for $1,200.

MCDONALD’S

The year didn’t begin well for McDonald’s. The company’s sales slumped as inflation-weary customers chose to eat at home instead of grabbing fast food. But a $5 meal deal introduced in June helped draw lower-income customers back into stores. McDonald’s extended the deal through the end of this year and said more value is coming in 2025. The fast food giant is working to get customers back after a fall E. coli outbreak linked to raw onions in Quarter Pounder hamburgers sickened at least 104 people in 14 states.

LOSERS:

TARGET

Target’s cheap chic fashions and home decor have long been a big attraction, but the chain faced challenges in 2024. Unlike Walmart, Target is more reliant on discretionary items like clothing because less than a quarter of its sales come from food and beverages. It has always battled a perception of being more expensive, and analysts say its merchandise has lately been in disarray. Still, Target drew crowds on Black Friday with exclusive Taylor Swift products.

STARBUCKS

Starbucks had a tough year. Orders are getting increasingly complex, with thousands of ways to customize drinks. That’s leading to long lines and incorrect pickup times on the mobile app. New offerings like olive oil-infused coffee didn’t attract customers, who also grew tired of Starbucks’ high prices. Starbucks hired a new CEO, Brian Niccol, in the fall to help turn things around. But labor strife, which led to strikes in December, could continue to hurt the company in 2025.

LEGACY RESTAURANTS

Several decades-old chains threw in the towel in 2024, succumbing to rising competition, changing dining patterns and big portfolios of outdated restaurants. Red Lobster, TGI Fridays and Buca di Beppo all filed for Chapter 11 bankruptcy protection and shuttered dozens of locations. A leaner Red Lobster later exited bankruptcy under new ownership, but it remains to be seen whether older chains can turn around years of declining sales.

BIG TICKET ITEMS

At the height of the coronavirus pandemic, U.S. consumers took advantage of low interest rates and stimulus benefits to remodel their homes and make other big purchases. But last year, they pulled back. That’s been a challenge for retailers like Best Buy, the nation’s largest consumer electronics chain, which noted lower sales of appliances, home theaters and gaming equipment. Home Depot and Lowe’s also reported lower sales of big-ticket items, particularly discretionary kitchen and bathroom remodeling projects.

DEPARTMENT STORES

Department stores, particularly those catering to middle income shoppers, have struggled to hold onto customers as many turn to online shopping or to fast-fashion retailers. Among the worst performers: Menomonee Falls, Wisconsin-based Kohl’s, which reported its 11th consecutive quarter of sales declines this year. Outgoing CEO Tom Kingsbury recently owned up to merchandising mistakes, including scaling back fine jewelry, popular store label brands and petite sizes. Customers will see those categories return in the coming year.

Macy’s said it would close 150 namesake stores over three years and open 15 higher-end Bloomingdale’s. Upscale Nordstrom, on the other hand, had a better than expected fiscal year due largely to soaring sales at its off-price Nordstrom Rack stores.

Housing market poised for 2025 comeback as lower rates unleash pent-up demand

Real estate comeback?

Photo: The Canadian Press

Condo towers under construction and cranes at the Oakridge Mall redevelopment are shrouded in fog, in Vancouver, B.C., Tuesday, Dec. 3, 2024.  

As the calendar flipped one year ago, Canadian real estate watchers were optimistic a sluggish 2023 would give way to a rebound, with hopes of renewed demand as soon as the spring.

But the lag in 2024 lasted longer than some expected, with the Bank of Canada waiting until June to deliver the first of the year's five interest rate cuts. While buyers stormed back to the market this fall, experts noted the first few rate cuts hadn't been enough to motivate everyone to leave the sidelines quite yet.

Now heading into 2025, economists and real estate agents believe activity is poised to remain strong amid much lower borrowing costs and more favourable rules for buyers, despite an overall challenging affordability picture.

The Canadian Real Estate Association reported earlier this month the number of homes sold in November jumped 26 per cent year-over-year, marking the second straight month of gains at that level. For the first 11 months of the year, cumulative home sales were up 6.9 per cent compared with 2023.

"The big thing is first-time homebuyers are back and are going to continue to get into the market," said Re/Max Canada president Christopher Alexander in an interview.

"We expect, overall, a much more robust year as far as activity goes and consumer confidence, especially with further anticipated rate decreases."

The Bank of Canada lowered its policy rate by a half-percentage point earlier this month, bringing it to 3.25 per cent, while signalling a more gradual approach to future cuts in the new year.

Alexander said high interest rates — the central bank's policy rate stood at five per cent before its cutting cycle — have been a major barrier of entry for would-be buyers.

Re/Max's 2025 housing market outlook report said it is expecting home sales to rise in 33 of 37 Canadian regions, including increases of up to 25 per cent, along with the national average residential price rising by five per cent.

Alexander said the market didn't really take off after the bank's first few cuts in part due to messaging that it expected to decrease rates even further as the months rolled along. He said that caused many would-be buyers to hold off "in anticipation of more affordability."

"But the challenge with that strategy is at a certain point, you hit the point of no return where rates have come down so it's a little bit less expensive on a monthly basis, but then it becomes more competitive, so prices go up," he said.

Hamilton, Ont., broker Mike Heddle said for the better part of two years, it's felt like the "pendulum has swung" from the strong seller's market of 2021 and 2022.

"There's just been a real big pause and the masses are just kind of waiting and seeing," said Heddle of Royal LePage State Realty.

"I'm predicting that we're going to see a much stronger and resilient 2025 where we'll probably hover around a balanced-to-a-seller's market."

He said buyers' confidence has been evident in recent weeks, having personally seen an uptick in offers on homes. That could carry over into January after a holiday period that is often fairly quiet.

While pent-up demand should translate to more homes changing hands in the coming months, "it's not going to be a force forever," said TD economist Rishi Sondhi. He cautioned that rush will likely be exhausted "relatively soon, probably the first half of next year."

The national average sale price stood at $694,411 in November, according to CREA.

The initial demand boom should push housing prices higher, though Sondhi noted markets in Canada's two largest provinces, Ontario and B.C., are still dealing with big supply backlogs that will take time to clear.

Along with falling interest rates, Sondhi said the federal government's recent mortgage rule changes, which kicked in Dec. 15, should help lift home sales and prices.

Those measures included extending the maximum mortgage amortization period for first-time homebuyers to 30 years from 25, and the cap for which a potential buyer can obtain an insured mortgage being raised from $1 million to $1.5 million.

TD forecasts home sales will rise by 16 per cent across Canada in 2025 on a year-over-year basis, while Canadian average home prices will go up eight per cent.

"You have falling interest rates, you have the likelihood of continued economic growth, and you have these federal measures, all of which should support a good year for housing," said Sondhi.

Another advantage for buyers is the national banking regulator's recent move to remove a stress test for uninsured mortgages, said Ratesdotca mortgage and real estate expert Victor Tran.

The Office of the Superintendent of Financial Institutions announced in September it would end the policy for lenders to apply the minimum qualifying rate to straight switches when uninsured mortgages are renewed at a different institution under the borrower's current amortization schedule and loan amount.

"The spring market will be really hot because of all these recent changes with affordability," said Tran.

Other factors, such as the labour market and political uncertainty — both domestically and in the U.S. — could play a role in determining the housing picture next year, he said.

But Tran said it's premature to start comparing the market to 2021 and early 2022 when activity skyrocketed.

"The rates are still not low enough yet compared to what they were before," said Tran.

"Affordability is improving a little bit, but qualification is still very difficult for a lot of Canadians. So house prices do need to come down a little bit more to really spur a lot more activity."

For those who find themselves on the verge of entering the market, Alexander said waiting until the perfect time could be a risk in itself.

"You won't see 2021 activity for a long time. Prices were going up almost by the day," he recalled.

"I don't see that happening for a long time, but my advice always is, 'Buy within your means.' Timing the market usually ends up in disaster."

Machinery fire extinguished at Delta, B.C., coal port terminal: Port authority

Machinery fire extinguished

Photo: Delta Fire & Emergency Services

The Vancouver Fraser Port Authority says a machinery fire this morning at a Delta, B.C., terminal facility has been put out and no injuries were reported.

The authority says in a written statement that a coal stacker caught fire at a facility operated by Westshore Terminals, temporarily shutting operations at the terminal and a neighbouring facility operated by GCT Deltaport.

The statement says the Delta fire department responded "immediately," and the blaze has now been put out but fire officials are still on scene to monitor the site.

The port authority says no injuries were reported, and Westshore is "continuing to manage" the response with Delta fire officials.

Video footage posted online Saturday shows thick black smoke billowing upwards from a conveyor engulfed in flames at the facility.

Photos posted on social media also show the smoke on the horizon visible from the Tsawwassen ferry terminal.

Westshore Coal Terminal at Delta Port is on fire.
Located near Tsawwassen Ferry Terminal
Vancouver pic.twitter.com/ooW8LtXNjh

— sonofabench (@therealmrbench) December 28, 2024

Trump asks Supreme Court to delay TikTok ban so he can weigh in after he takes office

Trump asks for TikTok delay

Photo: The Canadian Press

The TikTok Inc. building is seen in Culver City, Calif., March 17, 2023.

President-elect Donald Trump asked the Supreme Court on Friday to pause the potential TikTok ban from going into effect until his administration can pursue a “political resolution” to the issue.

The request came as TikTok and the Biden administration filed opposing briefs to the court, in which the company argued the court should strike down a law that could ban the platform by Jan. 19 while the government emphasized its position that the statute is needed to eliminate a national security risk.

“President Trump takes no position on the underlying merits of this dispute. Instead, he respectfully requests that the Court consider staying the Act’s deadline for divestment of January 19, 2025, while it considers the merits of this case,” said Trump’s amicus brief, which supported neither party in the case and was written by D. John Sauer, Trump’s choice for solicitor general.

The argument submitted to the court is the latest example of Trump inserting himself in national issues before he takes office. The Republican president-elect has already begun negotiating with other countries over his plans to impose tariffs, and he intervened earlier this month in a plan to fund the federal government, calling for a bipartisan plan to be rejected and sending Republicans back to the negotiating table.

Trump has also reversed his position on the popular app, having tried to ban it during his first term in office over national security concerns. He joined the app during his 2024 presidential campaign and his team used it to connect with younger voters, especially male voters, by pushing content that was often macho and aimed at going viral.

He said earlier this year that he still believed there were national security risks with TikTok, but that he opposed banning it. This month, Trump also met with TikTok CEO Shou Chew at his Mar-a-Lago club in Florida.

The filings Friday come ahead of oral arguments scheduled for Jan. 10 on whether the law, which requires TikTok to divest from its China-based parent company or face a ban, unlawfully restricts speech in violation of the First Amendment. The law was was signed by President Joe Biden in April after it passed Congress with broad bipartisan support. TikTok and ByteDance filed a legal challenge afterwards.

Earlier this month, a panel of three federal judges on the U.S. Court of Appeals for the District of Columbia Circuit unanimously upheld the statute, leading TikTok to appeal the case to the Supreme Court.

The brief from Trump said he opposes banning TikTok at this junction and “seeks the ability to resolve the issues at hand through political means once he takes office.”

In their brief to the Supreme Court on Friday, attorneys for TikTok and its parent company ByteDance argued the federal appeals court erred in its ruling and based its decision on “alleged ‘risks’ that China could exercise control” over TikTok’s U.S. platform by pressuring its foreign affiliates.

The Biden administration has argued in court that TikTok poses a national security risk due to its connections to China. Officials say Chinese authorities can compel ByteDance to hand over information on TikTok’s U.S. patrons or use the platform to spread or suppress information.

But the government “concedes that it has no evidence China has ever attempted to do so,” TikTok’s legal filing said, adding that the U.S. fears are predicated on future risks.

In its filing Friday, the Biden administration said because TikTok “is integrated with ByteDance and relies on its propriety engine developed and maintained in China,” its corporate structure carries with it risk.

A 9th telecoms firm has been hit by a massive Chinese espionage campaign, the White House says

Is China listening?

Photo: The Canadian Press

FILE - Anne Neuberger, Deputy National Security Advisor for Cyber and Emerging Technology, speaks during a press briefing at the White House,March 21, 2022, in Washington.

A ninth U.S. telecoms firm has been confirmed to have been hacked as part of a sprawling Chinese espionage campaign that gave officials in Beijing access to private texts and phone conversations of an unknown number of Americans, a top White House official said Friday.

Biden administration officials said this month that at least eight telecommunications companies, as well as dozens of nations, had been affected by the Chinese hacking blitz known as Salt Typhoon.

But Anne Neuberger, the deputy national security adviser for cyber and emerging technologies, told reporters Friday that a ninth victim had been identified after the administration released guidance to companies about how to hunt for Chinese culprits in their networks.

The update from Neuberger is the latest development in a massive hacking operation that has alarmed national security officials, exposed cybersecurity vulnerabilities in the private sector and laid bare China's hacking sophistication.

The hackers compromised the networks of telecommunications companies to obtain customer call records and gain access to the private communications of “a limited number of individuals." Though the FBI has not publicly identified any of the victims, officials believe senior U.S. government officials and prominent political figures are among those whose whose communications were accessed.

Neuberger said officials did not yet have a precise sense how many Americans overall were affected by Salt Typhoon, in part because the Chinese were careful about their techniques, but a “large number" were in the Washington-Virginia area.

Officials believe the goal of the hackers was to identify who owned the phones and, if they were “government targets of interest,” spy on their texts and phone calls, she said.

The FBI said most of the people targeted by the hackers are "primarily involved in government or political activity.”

Neuberger said the episode highlighted the need for required cybersecurity practices in the telecommunications industry, something the Federal Communications Commission is to take up at a meeting next month.

“We know that voluntary cyber security practices are inadequate to protect against China, Russia and Iran hacking of our critical infrastructure,” she said.

The Chinese government has denied responsibility for the hacking.

Holiday shoppers increased spending by 3.8% despite higher prices

Holiday shopping up

Photo: The Canadian Press

A shopper looks at handbags at Macy's department store on Sunday, Nov. 24, 2024, in New York.

Sales rose this year during the holiday shopping season even as Americans wrestled with elevated prices for many groceries and other necessities, according to new data.

Holiday sales from the beginning of November through Christmas Eve climbed 3.8%, outpacing the 3.1% increase from a year earlier, according to Mastercard SpendingPulse, which tracks all kinds of payments including cash and debit cards. The last five days of the season accounted for 10% of the spending.

This year, retailers were even more under the gun to get shoppers in to buy early and in bulk since there were five fewer days between Thanksgiving and Christmas.

Michelle Meyer, chief economist at Mastercard Economics Institute, said the holiday shopping season “revealed a consumer who is willing and able to spend but driven by a search for value” as seen by concentrated online spending during the biggest promotional periods.

Sales growth was higher than the 3.2% increase Mastercard SpendingPulse had projected this fall. The data released Thursday excludes the automotive industry and is not adjusted for inflation.

Clothing sales rose 3.6%, with most of the growth being fueled by online shopping. Spending on restaurants, and sales of electronics and jewelry also grew. Online sales jumped 6.7% from a year ago and in-person spending rose 2.9%.

Consumer spending accounts for nearly 70% of U.S. economic activity and economists carefully monitor how Americans use their money, particularly during the holidays, to gauge how they’re feeling financially.

The most recent government data on consumer spending, released on Dec. 17, showed shoppers stepped up activity at retail stores last month. But auto dealer sales drove most of those gains as huge storms created a need for new cars in parts of the southeast slammed by Hurricane Helene in October. Big discounts at many retail chains also attracted shoppers.

But the report also hinted at some consumer caution as sales at grocery stores, clothing shops, and restaurants fell. Outside of car dealers and online retailers, sales gains were modest.

Retailers felt more pressure this year due to the shorter holiday shopping period, and also from a presidential election that captured the attention of many consumers. Sales of general merchandise slid 9% in the two weeks ended Nov. 9, according to Circana, a market research group. Sales have been rebounding but stores will have to make up for those losses.

A broader picture of how Americans are spending their money arrives next month when the National Retail Federation, the nation’s largest retail trade group, releases its combined two-month statistics based on November-December sales figures from the Commerce Department.

The group expects that shoppers will have made $979.5 billion to $989 billion worth of purchases in November and December, which would represent a 2.5%-3.5% increase over the same two-month period a year ago. That would be a slower rate than the 3.9% increase from holiday 2023 over holiday 2022 season.

Overall, retailers had a decent start to the unofficial kickoff to the holiday shopping period despite lots of discounts that started as early as October.