2007/10/17

Marie Selby
RE/MAX of Western Canada Phone: 250-860-3628

Eva Blay/Charlene McAdam/Kim Kofman Point Blank Communications Phone: 416-781-3911

Slow and steady growth forecast for residential real estate

Canadian home sales to top 500,000 in 2007

Kelowna, BC (October 17, 2007)-After posting extraordinary gains in 2007, housing market
performance will moderate in most major Canadian centres in 2008, according to a report
released today by RE/MAX.

The RE/MAX Housing Market Outlook 2008 examined residential real estate trends in 18
markets across the country. The report found that while economic prospects will continue
to improve next year, few major markets are expected to exceed record sales levels set in
2007. Winnipeg, Hamilton-Burlington, Kitchener-Waterloo, London-St. Thomas, Ottawa,
Sudbury, Saint John, Halifax-Dartmouth, and St. John's are all predicted to buck the trend
in 2008, with appreciation ranging from one to seven per cent. Average price is forecast
to increase in 78 per cent of markets surveyed next year, with the lowest price increase
expected in Edmonton and the highest in St. John's.

Nationally, the number of homes sold is expected to break through the half-million
threshold in 2007, climbing 13 per cent to an estimated 545,400 units, up from 483,770
units one year ago. Average price is projected to appreciate nine per cent to $303,000, up
about $25,000 over 2006 levels. In 2008, home sales are expected to retreat to 500,000
units while Canadian housing values are forecast to continue their ascent, rising six per
cent to $321,000.

"Clearly, economic prosperity has translated into increased housing sales and upward
pressure on prices across the board," says Elton Ash, Regional Executive Vice President,
RE/MAX of Western Canada. "The country's economic engine fired on all cylinders throughout
the year, despite dire conditions south of the border. As in 2007, inventory will be the
major wildcard next year-the ultimate variable most expected to influence housing market
conditions and performance. A return to tight market conditions could mean all bets are
off as buyers are forced to compete, creating increased market pressure."

Major market frontrunners for price appreciation in 2008 include St. John's (12 per cent),
Regina and Kelowna ­Central Okanagan (nine per cent), Hamilton-Burlington and Saint John
(eight per cent) and Greater Vancouver (seven per cent). Leading the country in sales
growth next year will be Kitchener-Waterloo (seven per cent), followed by
Hamilton-Burlington, London-St. Thomas, Sudbury and Halifax-Dartmouth, each forecasting a
five per cent gain.

Higher mortgage rates and increased inventory levels failed to materialize in most major
centres, making 2007 a record year for real estate activity in Canada. By year-end,
housing values across the country are expected to shatter existing records. Serious
double-digit increases in average price are forecasted for Saskatoon (49), Edmonton
(31.5), Regina (21), Calgary (20), Sudbury (20), Kelowna (19.5) Saint John (17), St.
John's (12), and Greater Vancouver (10).

Saskatchewan dominated real estate news in 2007, reporting some of the highest percentage
increases in unit sales. The number of homes sold in Regina by year-end is expected to top
35 per cent, bringing sales to an estimated 4,000 units. Neighbouring Saskatoon is
forecast to climb 28 per cent to 4,400 units in 2007. Other centres expected to post
double-digit gains in activity include Saint John (19 per cent) Kitchener-Waterloo (13 per
cent), Halifax-Dartmouth (12 per cent), St. John's (11 per cent), and Toronto (10 per
cent).

"Western markets were first out of the gate in 2007, but those in the East followed suit,"
says Michael Polzler, Executive Vice President and Regional Director, RE/MAX
Ontario-Atlantic Canada. "By year-end, some of the most impressive gains in home sales
will be realized in Ontario and Atlantic Canada. Solid economic fundamentals, including
billions of dollars in capital projects, a positive unemployment outlook, and solid
consumer confidence levels will propel markets forward. A slow and steady growth
trajectory, minus the peaks and valleys experienced in 2007, is forecast for next year."

RE/MAX is Canada's leading real estate organization with over 17,500 sales associates
situated throughout its more than 640 independently owned and operated offices across the
country. The RE/MAX franchise network, now in its

34th year of consecutive growth, is a global real estate system operating in over 65
countries. More than 7,000 independently owned offices engage 120,000 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.

For more information:

Marie Selby
RE/MAX of Western Canada 250.860.3628

Eva Blay/Charlene McAdam/Kim Kofman Point Blank Communications 416.781.3911