CANADA’S HOUSING MARKET REMAINS STABLE;

TORONTO, April 3, 2008 - Strong local economies and population growth support buyer demand

TORONTO, April 3, 2008 – Canada’s real estate market stands on stable footing. On average, healthy year-over-year house price gains were recorded during the first three months of 2008. While more modest price increases were observed when compared to previous quarters, the solid appreciations noted in the first quarter are largely due to the shared effects of resilient local economies, high immigration levels, and relatively low interest rates – all leading to enduring buyer demand, according to a House Price Survey report released today by Royal LePage Real Estate Services.

Average house prices increased in Toronto and Montreal during the first quarter, while unit sales activity dipped from the same period last year. While there was a decline in unit sales volumes, the current activity levels in both cities are amongst two of the best first quarters on record for Toronto and Montreal.

It is worth noting that record snowfall in Central Canada and Quebec left many city streets and sidewalks virtually inaccessible to potential homebuyers during the first quarter. As a result, many sellers held off listing their homes, choosing to wait for more conducive weather for open houses and viewings.

In Toronto, persistent buyer demand and limited inventory levels continued to pressure prices upward in the first quarter; however, activity levels were slightly down. Record snowfall in Toronto left many city streets and sidewalks virtually inaccessible to potential homebuyers during the first quarter. As a result, many sellers held off listing their homes, choosing to wait for more conducive weather for open houses and viewings. While Toronto’s real estate market performed a little slower than expected during the first quarter of 2008, it is likely to gain strength as it moves into the busy spring season. Despite decreased overall activity, some of the city’s neighbourhoods still received significant buyer interest, often resulting in multiple offer situations for well-priced, well-situated homes.

Helping fuel Canada’s housing market is its status as having the fastest population growth amongst the G-7 countries. This is a stabilizing force within the Canadian housing market and is critical for price appreciation in the longer term. Canada continues to attract a high number of skilled immigrants; while immigrants have typically gravitated to larger cities such as Vancouver, Montreal and Toronto, trends now illustrate that secondary cities requiring skilled workers are regarded as home to many newcomers.

In addition to steady population growth, the structure of Canada’s financial services industry, and the lending products they provide, has buffered the country from the credit issues that currently exist within the U.S. housing market.

“Canada’s housing market remains on solid footing. With the notable exception of a handful of small western cities, the country has returned to an environment characterized by moderate house price increases,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “These conditions are far more agreeable to those searching for a home, and are more sustainable in the long term than the sharp price increases recently experienced.”