2007/11/14

Point Blank Communications
RE/MAX of Western Canada

Condominiums achieve unprecedented favour among Canadian homebuyers, says RE/MAX

Double-digit sales gains reported in most major markets in 2007

Kelowna, BC (November 14, 2007) -- After more than three decades of slow but steady
growth, the condominium concept has finally clicked with Canadian homeowners. The
lifestyle has proven to be a solid investment in housing markets across the country,
chalking up some of the most impressive gains in residential real estate in 2007,
according to the RE/MAX Condominium Report released today.

Their universal appeal is substantiated, with every market reporting increased momentum in
condominium sales volume over 2006 levels. In fact, 80 per cent of markets surveyed
reported double-digit gains in sales year-over-year, with 53 per cent reporting increases
over 20 per cent. The greatest growth was experienced in Canada's small to mid-sized
markets. Leading the country, in terms of percentage increase in sales so far this year,
are Kitchener-Waterloo (+59%), Regina (+57%), St. John's (+54%), and Saskatoon (+33%).

"The white picket fence, sprawling green lawn and tidy urban bungalow has become an
unattainable ideal for many first-time buyers-especially in the West," says Elton Ash,
Regional Executive Vice President, RE/MAX of Western Canada. "By necessity, condominiums
have become the only practical means to homeownership for a growing segment of the
population. Today's entry-level purchasers aspire to manageable mortgage payments, sunset
city views, and the non-stop action and amenities of central core living, all packed into
600 to 800 sq. ft. The momentum of the market in recent decades has redefined the home
buying process."

While price appreciation on freehold properties, in particular, was the primary factor in
the upswing, the strong desire among baby boomers to lead an active, carefree lifestyle
has also driven the concept to unprecedented popularity. The RE/MAX Condominium Report
identified Greater Vancouver as the strongest market in the country - where close to 60
per cent of all residential sales now involve a condominium. Condominium presence is also
on the rise in centres such as Toronto, Edmonton, Calgary, Regina, Ottawa, and
Hamilton-Burlington, where condos now represent 20 to 30 per cent of all MLS sales.

"Deteriorating affordability levels in major Canadian centres have lead to the
resurrection of the condominium lifestyle in recent years," says Michael Polzler,
Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. "Condominiums
are clearly the answer to the skyrocketing cost of land and shelter that has all but
eradicated the dream of homeownership for many first-time buyers."

Condominium values were also up from coast-to-coast in 2007, with all major markets
reporting an increase in average price. Thirty-three per cent of cities surveyed reported
double-digit price appreciation. The most dramatic hikes were seen in Western Canada's
red-hot housing markets, led by Saskatoon (+24%), Calgary (+22%), Edmonton (+19%), Kelowna
(+16% or town homes, +12% or apartments), Vancouver (+14% or town homes, + 11% or
apartments), and Victoria (+9% or town homes, + 12% or apartments).

At the top end of the market, condominium ownership has been equated with lifestyle.
Throughout 2007, aging baby boomers fuelled demand for luxury condominium units. Upper-end
activity was reported to be on the rise in all markets examined, with the greatest
appreciation occurring in Edmonton (+154 %), Greater Toronto (+98 %), Victoria (+85 %),
Winnipeg (+58%), Vancouver (+49%) and Kitchener-Waterloo (+39%). The maintenance-free
factor, the ability to travel and to enjoy the best the city has to offer-from restaurants
to recreation-were citied in overall condominium appeal.

"In years past, there seemed to be a ceiling in terms of what buyers were willing to pay
for this type of product," says Polzler. "Widespread acceptance has seen that philosophy
tossed out the window. In the upper-end especially, buyers have demonstrated a willingness
to set new benchmarks, and in some cases, are spending more than what a detached home
might cost. Multiple offers, once unheard of, have become a reality in some centres."

New benchmarks for the most expensive apartment-style condominium units ever sold through
MLS have been reported in several cities in 2007, including Vancouver ($18 million),
Calgary ($3.7 million), Edmonton ($2.3 million), Winnipeg ($1.25 million), and
Kitchener-Waterloo ($670,000).

Given solid demand through all price ranges, it comes as no surprise that investors have
been very active in the majority of markets surveyed, hoping to snap up a piece of the pie
while demand remains at peak levels. Yet, with a growing number looking for a quick return
on investment, swelling inventory levels have become a serious concern in several markets,
most notably in Calgary and Edmonton, and to a much lesser extent, Kelowna.

"The impact of speculation, especially in Canada's largest condominium markets, have yet
to be determined, but concerns for the future are relevant," says Ash. "In downtown
Vancouver, an estimated 50 per cent of sales activity is attributed to investors, whereas
as much as 60-85 per cent of new condominiums sales in Toronto's downtown core reportedly
involved investors in 2007. This is a major factor that could influence prices in years to
come."

For now, a number of market fundamentals point to increased growth in sales, prices and
demand well into 2008. These include vibrant economies, Canada's aging population, rising
prices, and higher levels of immigration, to name a few.

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, is a global real estate
system operating in over 65 countries. More than 7,000 independently owned offices engage
more than 115,000 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.

RE/MAX of Western Canada

Point Blank Communications

CONDO REPORT