Current Market Update - Don Tom, P. Eng.

Higher Interest Rates

First-time buyers in major Canadian markets move to get in ahead of higher interest rates, says RE/MAX

Mississauga, ON (April 5, 2011) - Driven by the threat of higher interest rates down the road, first-time buyers are contributing to strong upward momentum in residential housing markets across the country, according to a report released by RE/MAX.

The The RE/MAX First-Time Buyers Report , highlighting trends and developments in nineteen major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points. Just over 30 per cent of markets are reporting sales in excess of 2010 levels as a result, while almost 70 per cent have experienced an upswing in average price. Leading the country in terms of percentage increases in the number of homes sold are Western Canadian markets, including Saskatoon (up close to 15 per cent), Greater Vancouver (up close to 12 per cent), and Winnipeg (up just over 11 per cent). With an average price hike of close to 20 per cent year-to-date (February), Greater Vancouver continues to show unprecedented strength, followed by Hamilton-Burlington (eight per cent), Quebec City (seven per cent), Winnipeg (close to seven per cent), Greater Toronto (five per cent), and Greater Montreal (five per cent).

Toronto Real Estate

GTA REALTORS® Report Monthly Resale Housing Market Figures

TORONTO, March 16, 2011 - the first two weeks of March 2011 – a five per cent decrease compared to the first two weeks of March 2010. The number of new listings also dipped – down by 15 per cent compared to the same period last year. "A positive economic outlook for the Greater Toronto Area, including steady growth in jobs and incomes, has kept households confident in their ability to purchase and pay for a home over the long term," said Toronto Real Estate Board (TREB) President Bill Johnston. The average price for transactions during the first 14 days of March was $460,196, representing a 4.6 per cent increase compared to the first two weeks of March 2010. "Market conditions are tighter compared to this time last year, resulting in more competition between buyers and sustained upward pressure on the average selling price. The annual rate of price growth is expected to range between three and five per cent in 2011," said Jason Mercer, TREB's Senior Manager of Market Analysis.

Greater Toronto REALTORS® reported 4,138 sales during Sales Average Price Sales Average Price City of Toronto ("416") 1,618 $512,179 1,726 $491,680 Rest of GTA ("905") 2,520 $426,820 2,627 $406,298 GTA 4,138 $460,196 4,353 $440,153 Source: Toronto Real Estate Board March 1st to 14th, 2011 2011 2010

Summary Of March Sales And Average Price

416 905 Total 416 905 Total Detached 537 1,399 1,936 758,409 512,864 580,972 Yr./Yr. % Change Semi Yr./Yr. % Change Townhouse 184 474 658 433,119 324,465 354,849Yr./Yr. % Change

Condo Apartment 703 278 981 352,057 254,529 324,419 Yr./Yr. % Change 1%‐12% ‐6% ‐8% 6% 7% 6%‐Detached 176 305 481 502,455 356,812 410,104‐15% 3% ‐5% 2% 6% 2%‐2% ‐1% ‐1% 14% 2% 6%‐6% ‐1% 8% 2% 7%

Source: Toronto Real Estate Board

Sales & Average Price By Home Type

Sales Average Price March 1st to 14th, 2011

Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 31,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.

Higher Interest Rates

Toronto Real Estate