Royal LePage Canada: Canadian Real Estate and MLS = Listings

CANADA=92S=20 REAL ESTATE MARKET EXPECTED TO CONTINUE STRONG GAINS INTO = THE FIRST=20 HALF OF 2010

Demand and supply finding balance = in the=20 second half of the year

TORONTO, January 7, 2010 =96 Canada=92s = residential=20 real estate market is forecast to remain unusually strong = through=20 the first half of 2010 as economic conditions across the=20 country improve and the stimulus impact of low = interest rates=20 continues to stoke demand, according to today=92s Royal = LePage House=20 Price Survey and Market Survey Forecast. As confidence = in the=20 recovery builds in early 2010, increases in average house = price=20 levels and overall market activity are expected to continue. = The=20 gradual erosion of affordability driven by higher house = prices and=20 the expected late-year modest upward movement of interest = rates,=20 together with an improvement in listings supply as = confidence=20 improves, are expected to bring the market back into balance = in the=20 second half of the year, when home price increases are = expected to=20 moderate.

=93The Canadian real estate market enters 2010 with = considerable=20 momentum from a unusually strong finish to the previous = year, said=20 Phil Soper, president and chief executive, Royal LePage Real = Estate=20 Services. =93The stimulus effect of low borrowing = costs has=20 contributed to a sharp rise in demand that has driven = activity=20 levels to new highs. This demand, coupled with a typical = seasonal=20 undersupply of homes for sale, should cause home prices to = continue=20 to appreciate significantly during the early months of the = year.=20 Improving supply as the year unfolds and easing demand as = the cost=20 of home ownership rises should moderate home price increases = in the=20 second half of 2010.=94

In contrast to the difficult months during the worst of = the=20 recession, house prices appreciated during the later part of = 2009,=20 with fourth quarter price averages surpassing averages from = the=20 fourth quarter 2008. The average price of detached bungalows = rose to=20 $315,055 (up 6.0%), the price of standard two-storey homes = rose to=20 $353,026 (up 5.2%), and the price of a standard condominium = rose to=20 $205, 756 (up 6.4%). The first two quarters of 2009 = saw=20 significant year-over-year price declines across the housing = types=20 surveyed and the third quarter provided the first signs saw = a strong=20 rebound in Canadian home values.

Regions that saw the strongest declines during the = recession are=20 now showing marked gains. Those regions include Toronto and = the=20 Lower Mainland, B.C. Vancouver in particular experienced a = robust=20 quarter, with home prices rising across all housing types=20 surveyed.

=93No other sector of the economy has been as = highly affected=20 by economic stimulus as housing,=94 commented Soper. =93As = consumer=20 confidence has improved, Canadians have shown a lingering = reluctance=20 to acquire depreciating assets such as consumer durables, = but have=20 embraced the opportunity to invest in real property. = Predictably,=20 the regions benefiting most from this renewed interest in = home=20 ownership are those with lower average house prices and = strong=20 economic confidence, such as Winnipeg and parts of Atlantic=20 Canada.=94

Soper added, =93Our forecast is built upon an expectation = that=20 interest rates will ease upward before the year=92s end, = which should=20 have a dampening effect on demand, allowing it to come into = balance=20 with the supply of resale homes on the market. Further, we = expect to=20 see an increasing number of homes listed for sale as the = year=20 progresses =96 as Canadians regain confidence in the = economy, they=20 should be more willing to enter into a large financial = transaction=20 such as the sale of a home.=94

REGIONAL MARKET SUMMARIES

Halifax saw varied gains across all = surveyed=20 housing types in comparison to fourth quarter 2008. Notably, = more=20 affordable homes posted the highest price increases due to = the=20 influx of workers returning from Western Canada.

Montreal saw strong gains this quarter = as=20 year-over-year price levels rose across all three housing = types=20 surveyed. Recent increases in demand have resulted in lower = than=20 normal inventory levels. Inventory levels are expected in = increase=20 in 2010. Continued demand is expected to result in moderate = price=20 levels.

House price levels in Ottawa are = moderately=20 higher this quarter compared to fourth quarter 2008 across = all=20 housing types surveyed. Fourth quarter sales activity did = not slow=20 as expected, and the demand has resulted in higher = incidences of=20 sellers receiving multiple offers, an unusual occurrence in = end of=20 year activity for this region. While inventory levels are = low and=20 there is competition among home buyers, this may abate as = the=20 government eases economic stimulus in 2010.

The Toronto market saw year-over-year = price=20 increases across the housing types surveyed in the fourth=20 quarter. Of particular interest is the increase in = sales of=20 higher-priced units, which were hit hard by the recession = over the=20 previous 12 months. There was a surge of first-time buyers = active in=20 the market last year, depleting the inventory of entry-level = units.=20 They are expected to be joined by move-up, executive, and = luxury=20 buyers in the coming year, resulting in additional price=20 appreciation.

Winnipeg saw some of Canada=92s largest = home price=20 increases this quarter. More than one third of homes sold in = the=20 region went for above their asking price driven largely by = first=20 time buyer activity. This strong growth is expected to = continue well=20 into 2010.

Inventory levels in Regina are low, as = much as=20 thirty per cent lower than expected for this time of year; = this=20 situation should be corrected in the spring of 2010. House = prices=20 should continue to increase into 2010, driven by labour = force growth=20 in the construction industry.

Price levels in Calgary remain constant = as the=20 market is correcting from the record growth seen in the = middle of=20 the previous decade. Inventory levels are one quarter the = levels=20 seen in 2008, and the reduction in choice has delayed = purchases.=20 Activity and price levels are expected to increase modestly = in=20 2010.

House price levels in Edmonton are also = still=20 correcting from the 2005 to 2007 boom. Low inventory levels = have=20 provided some price support, and activity is expected to = increase in=20 the spring of 2010.

Vancouver saw significant gains in price = levels,=20 with average increases of approximately ten per cent across = the=20 housing types surveyed. Inventory levels are beginning to = decrease,=20 and there has been an increase in sales involving multiple = offers.=20 Sales activity may drop off due to the city=92s focus on the = Olympics=20 in the first quarter, but the market is expected to be = robust for=20 the remainder of the year.

Royal LePage=92s quarterly House Price Survey (Q4=20 2009) shows the annual change of prices for key housing = segments in select national markets. Click here to view the = chart (.PDF).

The Royal LePage Survey of Canadian House Prices is the = largest,=20 most comprehensive study of its kind in Canada, with = information on=20 seven types of housing in over 250 neighbourhoods from coast = to=20 coast. This release references an abbreviated version = of the=20 survey, which highlights house price trends for the three = most=20 common types of housing in Canada in 80 communities across = the=20 country. A complete database of past and present = surveys is=20 available on the Royal LePage Web site at http://www.royallepage.ca/. = =20 Current figures will be updated following the complete = tabulation of=20 the data for the fourth quarter. A printable version of the = fourth=20 quarter 2009 survey will be available online on February = 5th,=20 2010.

Housing values in the Royal LePage Survey are Royal = LePage=20 opinions of fair market value in each location, based on = local data=20 and market knowledge provided by Royal LePage residential = real=20 estate experts. Historical data is available for some = areas=20 back to the early 1970s.

About Royal=20 LePage
Royal LePage is Canada=92s leading = provider=20 of franchise services to residential real estate brokerages, = with a=20 network of nearly 14,000 real estate professionals in over = 600=20 locations across Canada. Royal LePage believes in the=20 importance of giving back to the community and is the only = Canadian=20 real estate company to have its own charitable foundation. = The=20 Shelter Foundation is dedicated exclusively to funding = women=92s=20 shelters and violence prevention and education programs. = Royal=20 LePage is managed by Brookfield Real Estate Services, and is = part of=20 a brand family that includes Royal LePage, Johnston and = Daniel, and=20 La Capitale Real Estate Network. An affiliated = company,=20 Brookfield Real Estate Services Fund, is a TSX listed income = trust,=20 trading under the symbol =93BRE.UN.=94

For more information visit http://www.royallepage.ca/.

For further information, please=20 contact:

Tammy Gilmer
Director, Public Relations and National=20 Communications
Royal LePage Real Estate=20 Services
416-510-5783

David Kaiser
Senior Vice = President
Fleishman-Hillard=20 Canada
416-645-3682

Canadian Housing Trends - 2010 Royal LePage = Market=20 Survey Forecast (.PDF)

Royal LePage Q4 2009 House Price=20 Survey (.PDF)

Royal LePage Q4 2009 House Price Survey - = Map=20 Format (.PDF)

Printable version of this=20 release (.PDF)