CANADIAN HOUSING MARKET DEMONSTRATES CONTINUED STRENGTH IN SECOND QUARTER

Average prices rise in all major markets

TORONTO, July 6, 2004 – Canadian real estate gathered strong momentum in the spring market buoyed by an influx of inventory that helped drive exceptional sales activity and higher average prices, year-over-year, according to a second quarter report released today by Royal LePage Real Estate Services.

Of the national markets examined, 94 per cent of those with detached bungalows increased in value; 91 per cent with standard two-storeys increased in price and 80 per cent with standard condominiums increased, year-over-year.

The average price of a detached bungalow rose to $249,200 (+6.8%), a standard two-storey home increased to $311,509 (+8.5%), and a standard condominium appreciated to $176,013 (+6.5%).

Vancouver experienced the highest price hikes in the second quarter, followed by St. John's, Newfoundland, and Montreal—which has seen accelerated gains in the last two quarters. Sizeable price appreciation was also observed in Victoria, Winnipeg and Saint John, New Brunswick.

“Demand has remained steadfast and strong in the past several years with vigorous activity only limited by a shortage of supply,” said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services. “While spikes in activity are typical of the spring real estate market, a record wave of new listings materialized across the country during the second quarter which allowed for the expression of pent-up demand.”

Added Soper: “A considerable jump in inventory levels typically brings more balance to the market. However, conditions remained tight in the second quarter and prices climbed higher over the same period last year. Marginal increases in interest rates worked as a further stimulus and the interest rate increases that have recently been forecast are not significant enough to inhibit current levels of demand.”

During the last few weeks of the quarter, activity began to wind down with the onset of summer vacation. However, the market is expected to be somewhat stronger over last summer and robust activity is expected to resume in the fall.

Royal LePage Real Estate Services Press Release – July 2004