For immediate release
Housing market set to return to more normal levels of activity
after summer lull, says RE/MAX
Market for luxury homes remains brisk, in spite of soft summer
Mississauga, ON (October 5, 2010) --
Residential real estate markets across Canada are set to return to morenormal 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.
The RE/MAX Market Trends Report Fall 2010, highlighting trends and developments in 19 major centres, found
year-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 per
cent, 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 per
cent. Last but not least, despite a lot of hype, the threat of higher interest rates, tighter lending policies and
the introduction of the Harmonized Sales Tax (HST) in Ontario and British Columbia had a nominal impact on
the market. Economic uncertainty played a much greater role on softer housing conditions over the summer
months.
"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."
-more-
Market 2010 2009 % +/- Price Point Market 2010 2009 % +/- Price Point
St. John's 48 30 60.0% $500,000 Ottawa 820 579 41.6% $500,000
Halifax-Dartmouth 355 277 28.2% $400,000 Winnipeg 188 92 104.4% $500,000
Saint John 58 39 48.7% $350,000 Regina 91 53 71.7% $500,000
Greater Montreal 144 120 20.0% $1,000,000 Saskatoon 31 18 72.2% $750,000
London-St. Thomas 234 151 55.0% $500,000 Edmonton 240 190 26.3% $700,000
Barrie 131 88 48.9% $500,000 Calgary 242 194 24.7% $1,000,000
Greater Toronto 2,135 1,401 52.4% $1,000,000 Greater Vancouver 1,356 940 44.3% $1,500,000
Hamilton 53 36 47.2% $750,000 Victoria 172 134 28.4% $1,000,000
Kitchener-Waterloo 54 22 145.5% $750,000 Kelowna 29 11 163.6% $1,000,000
Sudbury 44 15 193.3% $500,000-$750,000
Source: Local Real Estate Boards, RE/MAX
UPPER-END SALES BY MARKET - YEAR-TO-DATE (AUGUST)
RE/MAX Market Trends - Fall 2010...2
With the diminished risk of a W recession occurring, rebounding commodity and equity markets, and more
positive economic data emerging daily, the outlook for the residential housing market has vastly improved
over the past three months. Yet, markets are expected to record softer sales activity in the final quarter of the
year, in comparison to the same period in 2009.
"2009 defied logic in terms of residential housing activity. It was the best of times, it was the worst of times,"
says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "Comparisons are difficult. We
cleaned up in the first quarter of 2010 because housing activity during the same period one year earlier was
dismal. We're now comparing the second half of the year to 2009 and falling short of expectations. Looking at
the big picture however, the market remains healthy."
Average price is a major indicator of market stability. So far this year, every major centre has reported an
increase in average price. Inventory levels are also an important part of the equation and the influx of listings
that experienced in late 2008 have failed to materialize – a factor the will provide stability in the marketplace
moving forward. In fact, in some markets, new listings are down year over year.
"As overall economic performance improves, so too will housing activity," says Sylvain Dansereau, Executive
Vice President, RE/MAX Quebec. "Expect business as usual as real estate markets across the country head into
more balanced territory in the months ahead. The urgency characteristic of earlier this year has subsided. An
ample supply of homes exists across the board. Housing values are holding steady. Interest rates remain
attractive. History will show sound market fundamentals supported another healthy year of residential real
estate activity in 2010."
Highlights:
All markets reported a surge of 20 per cent or more in upper end home sales. Sixty-eight per cent ofmarkets saw upscale home sales climb in excess of 40 per cent, while 21 per cent boasted triple-digit
gains.
Sudbury led the country in sales appreciation, rising a significant 17 per cent year-to-date (1,876 unitsin 2010 vs. 1,599 in 2009).
While virtually all markets reported softened activity over the summer months, Winnipeg, MB saw 32per cent of all homes sell in multiple offers in August.
Montreal was the sole market still experiencing seller's market conditions, while Greater Toronto andWinnipeg were balanced, slightly favouring the seller.
First-time buyers led the charge in 58 per cent of markets, while move-up purchasers dominated in 21per cent of markets. The remainder reported all segments working in tandem.
Buyers were decidedly taking more time to make their decisions in recent months, with many delayingtheir home-buying intentions. It is expected that many purchasers sitting on the fence will make their
way back into the market on the heels of more positive economic news.
-moreRE/
MAX Market Trends - Fall 2010...3
RE/MAX is Canada's leader with over 18,000 sales associates situated throughout its more than 690
independently-owned and operated offices in Canada. The RE/MAX network, now in its 37
th year, is a globalreal estate system operating in 80 countries, with over 6,300 independently-owned offices and over 92,000
member sales associates. RE/MAX realtors 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.###
Christine Martysiewicz Eva Blay/Charlene McAdam
RE/MAX Ontario-Atlantic Canada Point Blank Communications
905.542.2400 416.781.3911
Market 2010 2009 % +/-
St. John's $249,263 $214,916 16.0%
Halifax-Dartmouth $252,220 $237,886 6.0%
Saint John $180,000 $176,000 2.3%
Greater Montreal $288,923 $266,125 8.7%
London-St. Thomas $227,794 $212,795 7.0%
Barrie $265,455 $250,401 6.0%
Greater Toronto $430,055 $385,978 11.4%
Hamilton-Burlington $303,030 $291,775 3.9%
Kitchener-Waterloo $300,774 $280,600 7.2%
Sudbury $228,000 $202,000 12.9%
Ottawa $326,666 $301,072 8.5%
Winnipeg $242,000 $218,000 11.0%
Regina $265,140 $246,559 7.5%
Saskatoon $292,323 $278,193 5.1%
Edmonton $332,789 $320,289 3.9%
Calgary (Metro) $411,233 $388,302 5.9%
Greater Vancouver $667,227 $574,061 16.2%
Victoria $495,993 $457,698 8.4%
Kelowna $418,598 $392,370 6.7%
Source: Local Real Estate Boards, RE/MAX
RESIDENTIAL AVERAGE PRICE BY MARKET - YEAR-TO-DATE (AUG.)
Market 2010 2009 % +/-
St. John's 2,291 2,183 5.0%
Halifax-Dartmouth 4,224 4,186 0.9%
Saint John 1,436 1,550 -7.4%
Greater Montreal 31,209 28,945 7.8%
London-St. Thomas 5,985 5,688 5.2%
Barrie 1,916 2,048 -6.5%
Greater Toronto 62,930 58,421 7.7%
Hamilton-Burlington 9,259 8,612 7.5%
Kitchener-Waterloo 4,616 4,371 5.6%
Sudbury 1,876 1,599 17.3%
Ottawa 10,747 10,721 0.2%
Winnipeg 8,620 8,663 -0.5%
Regina 2,628 2,659 -1.2%
Saskatoon 2,527 2,696 -6.3%
Edmonton 11,773 13,694 -14.0%
Calgary (Metro) 12,511 14,317 -12.6%
Greater Vancouver 22,022 23,158 -4.9%
Victoria 4,856 5,521 -12.0%
Kelowna 2,728 2,523 8.1%
Source: Local Real Estate Boards, RE/MAX
RESIDENTIAL UNIT SALES BY MARKET - YEAR-TO-DATE (AUG.)
