Housing market set to return to more normal levels of activity- RE/MAX Fall Market Report

Mississauga, ON (October 5, 2010) -- Residential real estate markets across Canada are set to return to more normal levels of activity after a brief summer pause, but most are unlikely to exceed robust sales posted in the final half of 2009, according to a report released today by RE/MAX.

Market for luxury homes remains brisk, in spite of soft summer

The RE/MAX Market Trends Report Fall 2010, highlighting trends and developments in 19 major centres, foundyear-to-date sales (January to August) ahead of 2009 levels in 11 markets (58 per cent). Prices were up yearover-year in all cities, with five experiencing double-digit gains in 2010 (Vancouver and St. John’s up 16 percent, Sudbury up 13 per cent, and Winnipeg and the Greater Toronto Area up 11 per cent). Balanced

conditions prevailed in most markets (79 per cent), with St. John’s, Kelowna, and Calgary declaring a firm

buyer’s market. By far the most interesting statistic reported was the significant upswing in upper-end sales in

both smaller and larger centres between January and August of this year, led by Sudbury at a 193 per cent

increase, Kelowna with a 163 per cent increase, Kitchener-Waterloo at 145 per cent, and Winnipeg at 104 percent. Last but not least, despite a lot of hype, the threat of higher interest rates, tighter lending policies and

summermonths.

“If anything demonstrates the underlying health of the national housing picture, it’s the surge in sales of luxury

properties this year,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “We know from experience that this segment of the market is usually the first to show pressure cracks when a market is softening- that has certainly not been the case this year, even during the summer slowdown.”