House price appreciation across Canada

to slow as more listings come on stream in 2007, says RE/MAX

Mississauga, ON (October 18, 2006) –

2007, thanks to a nationwide influx of new listings that is expected to slow price appreciation in major

Canadian centres, says a report released today by RE/MAX.

The RE/MAX Housing Market Outlook 2007 found that while the number of homes listed for sale is set

to climb, demand will remain strong in the 17 markets surveyed, including Vancouver, Victoria,

Kelowna, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Kitchener-Waterloo, Hamilton-Burlington,

Toronto, Ottawa, Montreal, Halifax, Charlottetown, Saint John and St. John’s. With few exceptions,

projections for sales volume in 2007 match or fall short of peak performance reported in 2005 and 2006,

with more balanced conditions – characterized by healthy inventory levels and less urgency in the market

-- expected to emerge.

Nationally, 462,000 properties are forecast to change hands next year, making 2007 the third best year on

record. After four years of double-digit gains, average price is predicted to climb a modest five per cent

to $290,000 by year-end 2007, up from $275,000 one year ago. All but three of the markets surveyed

(Kitchener-Waterloo, St. John’s, and Charlottetown) are predicting further escalation in housing values,

ranging from three to 10 per cent, in 2007.

“Strong economic fundamentals continue to fuel healthy residential real estate activity in markets across

the country, despite what is happening south of the border,” says Michael Polzler, Executive Vice

President and Regional Director, RE/MAX Ontario-Atlantic Canada. “We are heading into another year

of economic growth. Consumer confidence levels are strong. Unemployment levels are forecast to

remain low. Oil prices are expected to hover at $60 per barrel. The Canadian dollar continues to climb.

The Bank of Canada is holding the line on interest rate hikes. It’s all positive.”

Leading the country in terms of percentage increase in average price in 2007 are Calgary and Edmonton,

with housing values rising 10 per cent to $385,000 and $265,900 respectively. Both markets experienced

substantial upward pressure in pricing during 2006 –with Calgary climbing 40 per cent to $350,000 and

Edmonton rising 25 per cent to $241,750. Affordability is eroding, particularly in Western Canadian

markets, but consumers are adjusting to new market realities.

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RE/MAX Housing Market Outlook 2007…2

“Affordability is one of the more serious issues facing today’s real estate consumer, yet purchasers remain

steadfast,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Buyers

are simply getting more creative in their approach to homeownership, considering alternatives to singledetached

homes such as semi and row housing, town houses, and condominium apartments. They’re also

looking at peripheral areas located close to the city centre that provide a better bang for the buck. New

mortgage products that extend the traditional 25-year mortgage amortization period to 30 and 35-years

may also help them realize their goal of owning a home sooner rather than later.”

In 2007, the highest percentage increase in unit sales is expected to occur in Saskatoon, where sales are

forecast to climb seven per cent to 3,630 units. Edmonton is expected to place a strong second, with the

number of homes sold climbing five per cent to a record 21,300 units. Regina and Hamilton-Burlington

are tied for third place, both projecting a two per cent increase in unit sales to 2,950 and 13,800 units

respectively. Vancouver, Kelowna, Winnipeg, Ottawa, and Saint John are all projecting sales volume on

par with last year’s levels.

RE/MAX is Canada's leading real estate organization with over 16,690 sales associates situated

throughout its more than 625 independently owned and operated offices across the country. The

RE/MAX franchise network, now in its 407 month of consecutive growth, is a global real estate system

operating in over 63 countries. More than 6,545 independently owned offices engage 120,400 member

sales associates who lead the industry in professional designations, experience and production while

providing real estate services in residential, commercial, referral, relocation and asset management. For

more information, visit: www.remax.ca