2007/05/01

Point Blank Communications

Baby boomers living large in recreational property markets across Canada; Upper-end set to
soar in 2007

Kelowna, BC (May 1, 2007) - Luxury recreational property sales are set to soar in coming
months as affluent baby boomers drive demand for upscale product from coast-to-coast,
according to a report released today by RE/MAX.

The 2007 RE/MAX Recreational Property Report found the top-end of the market stands to
gain most from the aging baby boom demographic, as many prepare for their retirement
years. Teardowns, custom-builds, and renovation continue unabated as a result, changing
the shoreline of lakes and rivers in 34 of the 39 markets surveyed from
Newfoundland/Labrador to British Columbia. Upper-end sales have also affected recreational
property values across the board, placing upward pressure on prices, particularly in
Western Canada. Starting prices have topped $500,000 in 31 per cent of recreational
property markets. Only seven offer waterfront properties under the $250,000 price point.

"Baby boomers are investing in the future - from both a lifestyle perspective and an
economic standpoint/' says Elton Ash, Regional Director, RE/MAX of Western Canada.
"Tremendous equity gains have been realized in recent years as demand for recreational
properties across the country swells. Given the aging of the population, this trend is
expected to continue for at least the next five to 10 years as baby boomers move through
the cycle."

Boomers -- born between 1946 and 1965 - currently represent about one-third of Canada's
population and control approximately 45 per cent of its wealth. They own $230 billion in
real estate assets and have a net worth of $530 billion. While many boomers have
retirement in mind, others are looking for a second home where they can spend quality time
with their families and friends. Although the investment aspect is secondary, it still
plays an important role in the decision to purchase a recreational property, be it a
lakefront cottage, a hobby farm with acreage, or an oceanfront condominium.

"It's been said that money made in stocks and bonds typically works its way into real
estate/, says Michael Polzler, Executive Vice President and Regional Director, RE/MAX
Ontario-Atlantic Canada. "This year is a prime example, as economic performance and stock
market profits have propped up activity in most Canadian markets. The boomer attitude is
go big or stay home."

While building the dream clearly appeals to a broad range of purchasers, realizing
ownership is becoming increasingly difficult. Affordability is top-of-mind in many
markets. Purchasers without the financial wherewithal to ante up are considering smaller
lakes and riverfront properties, as well as timeshares and fractional ownership. Even
land-leased properties are garnering attention.

Atlantic Canada continues to offer up the best bang for the buck, with the Eastern
Coastline, NL at $75,000, Greater Moncton Area, NB at $80,000, and South Shore, Lunenburg
County, NS at $225,000. In Ontario, Parry Sound, Elliot Lake, and Combermere attract
price-conscious buyers staring from $200,000, $150,000 and $190,000 respectively. In the
West, great value can be found at Lake Winnipeg, MB from $200,000 as well as the Central
South Cariboo in BC from $275,000. The most expensive markets in the country, located in
British Columbia, Alberta and Ontario, are as follows: Invermere starting at $2.5 million;
Kelowna at $2 million; Salt Spring Island at $1.5 million; Whistler at $1.1 million;
Sylvan Lake and Penticton at $1 million; North Okanagan/Shuswap at $900,000; Comox Valley
- Mt. Washington and Fraser Valley (Cultus Lake, Harrison Lake) at $800,000; Wasaga
Beachfront at $700,000; Midland at $550,000; Bala, Port Carling at $500,000 to $550,000;
and Honey Harbour/Port Severn, Orillia/Lake Couchiching and Port Elgin/Kincardine/Goderich
at $400,000.

"Limited inventory levels have contributed to the upswing in starting prices in 54 per
cent of recreational property markets this year," says Ash. "Despite upward pressure,
purchasers remain grounded when it comes to buying recreational properties. Very few
purchasers are willing to spend more than fair market value."

Forty-six per cent of markets have seen exponential growth in recent years, thanks to an
influx of purchasers from other parts of the country, as well as the U.s., Europe, and
Australia. Canadian recreational property markets are considered undervalued and
world-class - and as such, represent an incredible opportunity for international
investors.

"Compared to similar properties in the U.S. and overseas, we are extremely competitive,"
says Polzler. "In coveted recreational property areas throughout the U.s., waterfront
prices in the double-digit million-dollar range are quite commonplace."

RE/MAX is Canada's leading real estate organization with over 17,000 sales associates
situated throughout its more than 638 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 68 countries. More than 6,900 independently
owned offices engage 121,000 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.

RE/MAX REPORT