Calgary - 3 February, 2005 -

NATIONAL HIGHLIGHTS: Low interest rates and growing economy drive consumer confidence Prices will increase slower in 2005 after hot 2004 market Alberta, B.C. & Quebec will be strongest markets in 2005 Vancouver Canada’s housing markets were hot in 2004 and prices will increase further in 2005 continuing the longest and most consistent residential housing bull market in over 30 years, according to the year-end national house price survey released today by CENTURY 21 Canada. Don Lawby, President and Chief Operating Officer of Century 21 Canada Limited Partnership, says housing markets continue to be driven by low interest rates and a strong economy that is providing job stability, consumer confidence and an increasing number of home buyers. “I have never seen a market this strong, for so long, in so many markets across the country as I’ve seen in the past five years and I have been in the real estate industry for over 30 years,” Lawby said. “Furthermore, I can see nothing on the horizon that will change market direction. Past downturns in the market were usually caused by significant inflation leading to large increases in interest rates and people finding they could no longer sustain their skyrocketing mortgage payments. But nothing remotely like this is in sight today.” The CENTURY 21 survey compared prices of typical homes at year-end 2004 with year-end 1999 and found healthy price increases in all regions of the country. The highest price increases over the period were in the Ottawa communities of Gloucester, west Ottawa and Kincardine where increases were 92%, 86% and 67% respectively. Other strong increases were 48% and 53 0n Abbotsford and Richmond, B.C. respectively; 56 0n south central Calgary and 51 0n south east Edmonton; 62 0n North Kildonan and 59 0n St. Vital South, both suburbs of Winnipeg; 51 0n Newcastle and 50 0n Muskoka, Ontario; 51 0n Riverview, New Brunswick; and 63 0n Dartmouth, Nova Scotia. Lawby believes price increases will continue across the country, although they may be smaller in some regions than in 2004. “Interest rates continue to drive people to the market. Later in the year, they may increase between a quarter and three quarters of a percentage point, but they will still be attractive,” Lawby says. “The economy continues to prosper and grow. More and more people can demonstrate to lenders that their jobs are stable and that they can qualify for mortgage payments and so the number of buyers continues to increase.” Lawby said the strong market for existing housing has coincided for the past three years with a record pace of new home construction. “Most economists are forecasting new home construction in 2005 to be about 100wer than 2004 and this reduced supply of new homes will drive more purchasers to existing homes.” Lawby says the strongest markets are in Alberta, British Columbia and Quebec, but the Prairies, Atlantic Canada and Ontario are also showing increases across the board. “It is no surprise that Alberta will have the strongest housing market in Canada in 2005. All parts of the energy sector continue to roar along, and additional job creation is stimulated by the tax structure and the increasing number of head offices locating in the province. Percentage increases in Edmonton will likely outpace Calgary, but only because prices in Edmonton start from a lower base than in Calgary.” Lawby says the markets of B.C. and Quebec lagged behind when Alberta and Ontario took flight five years ago, but B.C. and Quebec are now making up for lost time. Lawby says that if the United States government opens its border to live cattle shipments from Canada as provincial agricultural ministers believe will occur despite the two new cases of mad cow disease (bovine spongiform encephalopathy , or BSE) in Alberta in 2005 the economies of all beef producing provinces would benefit, but the impact on the housing market would be felt most in Alberta, Saskatchewan and Manitoba. “Obviously, the greatest benefit would go to cattle producers and the industry that services them, but I think the economies of these provinces in general and, therefore, their housing markets would be stimulated by an extra shot of consumer confidence that the border opening would bring.” In Ontario, Lawby says there is little evidence to suggest that the increased value of the Canadian dollar has hurt Ontario’s manufacturing export industries enough to seriously impact the housing markets. “Ontario’s economy is strong and diverse and all indications are that housing prices will increase through 2005, although perhaps moderately less than 2004.” In Atlantic Canada, housing markets in all the major cities, including Halifax, St. John’s, Fredericton and Charlottetown, will continue to see increases. The CENTURY 21 house price survey reflects the price of a typical house in 78 communities across Canada. Century 21 Canada Limited Partnership is a real estate franchisor with exclusive rights to the CENTURY 21 brand in Canada and is part of the world's largest residential real estate sales organization. CENTURY 21 provides comprehensive training, management, administrative and marketing support for the CENTURY 21 System, which is comprised of more than 6,600 independently owned and operated franchised broker offices in more than 40 countries and territories worldwide. CENTURY 21 Canada is the only organization to offer customers AIR MILES reward miles on real estate transactions. For more information visit the award-winning Century 21 Canada Limited Partnership website at www.century21canada.com.

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