For immediate release

HOUSING IN KEY CANADIAN MARKETS POISED
TO OUTPERFORM STOCK MARKET, SAYS RE/MAX

(Kelowna, BC) After a decade in the wilderness, residential real estate is expected to outperform the Toronto Stock Exchange in key Canadian centres, according to a joint report issued today by RE/MAX and independent housing market analyst Will Dunning.

The RE/MAX Housing as an Investment Report compares two investments -- buying an average-priced home and living in it versus renting an average two-bedroom apartment and investing the amount of money that would have been used for a down payment, as well as any savings that result from renting, in the Toronto Stock Exchange. The projections, which cover the period from January 2001 to December 2025, include housing markets in Vancouver, Calgary, Edmonton, Toronto, Ottawa, and Halifax/Dartmouth.;

Throughout the 25-year period, and at all five-year intervals, housing is expected to outperform the stock market as an investment in Vancouver, Calgary, Toronto, Ottawa, and Halifax/Dartmouth. The report was based on the actual historical performance of housing markets and the TSE 300 Index over the past 20 years. In just the first five years, the anticipated return on investment in homeownership in Vancouver was approximately 18 per cent higher ($186,455) than the after tax value of the TSE portfolio ($157,858). By 2025, the homeownership advantage represented an expected 43 per cent increase over the tenant's TSE portfolio ($796,000 vs. $1,140,000).

"Throughout the past century, there have been times of significant growth for virtually all investment vehicles," says Elton Ash, Executive Vice President, RE/MAX of Western Canada. "For example, in the 30s, 40s, 70s and 80s, housing was the investment of choice. In the 20s, 50s, and 60s, the stock market was the best bet. In the early 1990s, bonds were a frontrunner, with stocks taking the lead later in the decade. It was only a matter of time before Canadians reaffirmed their faith in homeownership."

According to Will Dunning, President of Will Dunning Inc. and former housing market analyst for the Canada Mortgage and Housing Corporation (CMHC): "The report is also based on the premise that tenants will invest all available resources. The truth of the matter is that not very many of us have that discipline. One of the virtues of homeownership is that it amounts to a "forced saving plan" - even if the homeowner makes just the minimum required mortgage payment, the result will be the accumulation of a considerable amount of housing wealth."

The strongest market activity is forecast for Toronto, where homeownership is expected to outperform the TSE by 120 per cent. Ottawa is expected to rank second in terms of performance, with the homeownership advantage 87 per cent ahead of the TSE by year-end 2025. Owning a home in Calgary and Vancouver are predicted to produce returns that exceed the TSE by 48 per cent and 43 per cent respectively at the end of the report period. Halifax and Edmonton are forecast to experience more modest levels of appreciation, with the homeownership advantage placing them 16 and 8 per cent respectively ahead of the Toronto Stock Exchange.

"The projections confirm what we've maintained for many years - that homeownership is a solid, long-term investment, " says Pamela Alexander, CEO and Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Over the past 12 months, extreme levels of volatility in the stock market have prompted many consumers to re-evaluate their investment choices. A subtle shift towards real estate is occurring as consumers realize the benefits of homeownership - both spiritually and financially. After all, you can't live in your mutual fund."

Additional highlights of the RE/MAX Housing as an Investment Report are as follows:

• The homeownerhip advantage kicks in almost immediately, with Toronto expected to outperform the TSE by December 2001, Ottawa by February 2002, Vancouver by May 2002, and Calgary by November 2004.
• The greatest appreciation is forecast to occur in Vancouver, where home equity is forecast to increase more than three-fold to just over $1.1 million between 2001 - 2025.
• Homeowners in Toronto are expected to show the largest cash gain after the 25-year period -- the differential between ownership and the after tax value of the portfolio weighing in at close to $570,000.

RE/MAX is Canada's leading real estate organization with over 10,000 Sales Associates situated throughout its more than 500 independently owned and operated offices across the country. RE/MAX lists and sells more real estate than any other real estate network in the world - more than one million transaction sides in the last year.*

*Based on publicly available information and on an audit by Arthur Andersen of 1997 RE/MAX residential real estate transaction sides in North America only.