Canadian housing markets buck recession

and trend upwards, says RE/MAX

Mississauga, ON (Sept. 24, 2009) -- With the worst of the recession over, residential real estate

markets in major Canadian centres are poised for growth in the final quarter of 2009, according

to a report released today by RE/MAX.

The RE/MAX Bricks and Mortar Report found the bounce back that began in early Spring has

made this recession one of the shortest on record for real estate. Low interest rates, pent-up

demand, and improved affordability levels have all played a role in the recovery now wellunderway.

Percentage increases in sales from January to August 2009 were led by Vancouver,

(up a substantial 14 per cent to 23,158), Victoria (up 7.4 per cent to 5,266), Edmonton (up 6.2

per cent to 13,691), Regina (up five per cent to 2,597), Ottawa (up 2.4 per cent to 10,830) and

Toronto (up 1.8 per cent to 58,421). Housing values are already ahead of record-breaking 2008

levels in seven of the 11 markets surveyed, including Newfoundland-Labrador (18.1 per cent

year to $203,584), Regina (6.4 per cent to $244,088), Halifax-Dartmouth (3.5 per cent to

$239,633), Winnipeg (3.5 per cent to $207,006), Ottawa (3.3 per cent to $301,684), and Toronto

(up 0.3 per cent to $385,978). Nationally, average price hovers at $312,585, up 0.5 per cent

over one year ago.

"Markets are heating up across the country," says Michael Polzler, Executive Vice President,

RE/MAX Ontario-Atlantic Canada. "Purchasers are clearly taking advantage of affordable prices

and rock bottom interest rates. Those who missed the boat in years past have found that sitting

on the sidelines can be a costly move. Prices are on the upswing and inventory levels are

tightening, so the push toward homeownership is expected to continue throughout the Fall and

possibly into early 2010."

The recovery of Canada's resale housing markets speaks to the tremendous value Canadians

place on the importance of owning a home. The number of Canadians overall who own a home

has increased since 1981 from 62.1 per cent to 68.4 per cent, with some markets posting even

higher homeownership rates -- Calgary (74.1), St. John's (71.5), Regina (70.1), and Edmonton

(69.2). Significant gains have also been made over the same period in markets such as Ottawa --

where homeownership levels rose from 51.4 per cent to 66.7 per cent -- and Toronto, where

levels rose fro m 57.3 to 67.6 per cent.

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RE/MAX Bricks and Mortar Report...2

"The strength of the residential housing sector cross-country has taken many economists and

housing analysts by surprise once again," says Elton Ash, Regional Executive Vice President,

RE/MAX of Western Canada. "In terms of its impact on the resale market, by historical

standards, this recession was one of the mildest. The resilience of bricks and mortar has been

demonstrated time and again. While there may still be some challenges down the road, the

worst is definitely behind us in the housing industry."

Over the past thirty years, the Canadian residential real estate market has experienced three

major downturns - 1981, 1989, and 2008. While there have also been regional fluctuations

throughout the years, return on investment over this period has been substantial, with

Vancouver, Victoria, Toronto, Regina and Ottawa leading the country in terms of price

appreciation.

The overall stability of real estate as an investment has also played a role. Markets like Halifax-

Dartmouth, Regina, Ottawa, Winnipeg and London have provided steady returns (especially in

recent years), with minimal fluctuation.

Public sentiment can best be illustrated by a recent Angus Reid Omnibus Survey* that asked the

question "In which do you feel more comfortable investing your money? The stock market or

real estate." Out of 1,000 respondents from coast-to-coast, 77 per cent chose real estate. The

results of the RE/MAX Bricks and Mortar Report are clearly representative of this national

dynamic at work.

RE/MAX is Canada's leading real estate organization with over 17,000 sales associates situated

throughout its more than 677 independently-owned and operated offices across the country.

The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in

more than 70 countries. Over 6,700 independently-owned offices engage nearly 100,000

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

production while providing real estate services in residential, commercial, referral, and asset

management. For more information, visit: www.remax.ca.

* The Angus Reid Omnibus Survey was conducted on September 15, 2009 and yields a margin of

error of +3.1 per cent, 19 times out of 20.

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For more information:

Christine Martysiewicz Eva Blay/Charlene McAdam

RE/MAX Ontario-Atlantic Canada Point Blank Communications

905.542.2400 416.781.3911

St. John's 69.5 71.5

Halifax 55.6 64.0

Ottawa 51.4 66.7

Toronto 57.3 67.6

London 58.0 65.9

Winnipeg 59.1 67.2

Regina 65.4 70.1

Calgary 58.4 74.1

Edmonton 57.9 69.2

Vancouver 58.5 65.1

Victoria 59.8 64.7

Source: Canada Mortgage and Housing Corporation (May 2008)

*Homeownership rates based on 1986 boundaries for the Census

Metropolitan Area (CMA)

Greater Vancouver $100,065 $574,061 473.7%

Victoria $85,066 $466,611 448.5%

Greater Toronto $75,694 $385,978 409.9%

Regina $48,628 $244,088 402.0%

Ottawa $63,177 $301,684 377.5%

Halifax-Dartmouth $53,161 $239,633 350.8%

Winnipeg $50,491 $207,006 310.0%

Calgary $93,977 $380,489 304.9%

London - St. Thomas $55,210 $213,683 287.0%

Newfoundland & Labrador $52,768 $203,584 285.8%

Edmonton $84,623 $319,939 278.1%

Canada $67,024 $312,585 366.4%

Source: Canadian Real Estate Association (CREA), RE/MAX