Vancouver - 26 July, 2005 -

Summer 2005 housing market entices first-time buyers with stable economy, low interest rates and zero down payments First Time Buyer HIGHLIGHTS: Compared with ten years ago, today’s first-timers want more features in their homes, have different attitudes about home ownership and must employ different purchasing strategies to satisfy their preferences than first-time buyers of ten years ago. Vancouver Although first-time home buyers are a growing component of this summer’s strong national housing market, they must pay significantly more for the same or a smaller home than what first-time buyers could afford ten years ago, according to an analysis by CENTURY 21 Canada. Don Lawby, President and Chief Operating Officer of CENTURY 21 Canada, says the low interest rates and regulations that allow zero down payment financing have encouraged first-time buyers into this summer’s market in increasing numbers across the country. Lawby says a survey of CENTURY 21 Canada brokers indicates today’s first-timers want more features in their homes, have different attitudes about home ownership and must employ different purchasing strategies to satisfy their preferences than first-time buyers of ten years ago. Markets are toughest for first-time buyers in the largest cities, such as Toronto, Vancouver, Montreal and Calgary. In Toronto, a typical first-time home this summer is a 700-square-foot condo in or near the downtown with 2 bedrooms and 1.5 bathrooms for $196,000, or $280 per square foot. Ten years ago, a typical first-time home in Toronto was 1,200-square-foot bungalow or slightly smaller townhouse or condo with 2 or 3 bedrooms and 2 bathrooms for $220,000, or $183.33 per square foot. The price per square foot has increased 52.730ver the ten years. In Vancouver, a typical first-time home this summer is a 650-square-foot condo in Yaletown with one bedroom and one bathroom for $250,000, or $384.62 per square foot. Ten years ago, a typical first-time home in downtown Vancouver was a 625-square-foot condo in the West End with 1 bedroom, 1.5 bathrooms and a den for $150,000, or $240 per square foot. The price per square foot has increased 60.620ver the ten years. In Montreal, a typical first-time purchase this summer is a 1,500 square-foot duplex or condo with 3 bedrooms and 2 bathrooms in a price range of $265,000, or $176.67 per square foot. Ten years ago a typical first-time home in Montreal was a 1,200-square-foot townhouse with 3 bedrooms and 1.5 bathrooms for $125,000, or $104.17 per square foot. The price per square foot has increased 69.600ver the ten years. In Calgary this summer, a typical first-time home is a 1,200-square-foot townhouse with 2 bedrooms and 2.5 bathrooms for $180,000, or $150 per square foot. Ten years ago, a typical first-time home in Calgary was a 1,300 square-foot townhouse with 2 bedrooms and 1.5 bathrooms for $90,000, or $69.23 per square foot. The price per square foot has increased 116.670ver the ten years. Perhaps the hottest first-time buyer market in Canada this summer is Fort McMurray, Alberta, where the booming oil-sands economy has pushed the price of a 1,200-square-foot townhouse with 3 bedrooms and 2 bathrooms to $285,000, or $237 per square foot. That compares with ten years ago when first-timers could purchase a slightly smaller townhouse for $46,000, or around $41.82 per square foot. The price per square foot has increased 467.930ver the ten years. On the other hand, the most accessible markets for first-time buyers this summer are in Saskatchewan, Manitoba, Atlantic Canada and the smaller cities of Ontario and Quebec. “Traditionally, first-time buyers have purchased older homes with the intention of fixing them up. Now, because prices are so much higher in most markets, first-timers simply can’t afford an older home because they can’t afford repairs or renovations,” Lawby says. “Instead they stretch for new condos or townhouses.” In markets where they can afford to buy and renovate an older large home, many of today’s first-timers are opting for newer detached homes or condos because they want to focus their time on career advancement and recreation instead of home improvement projects. “More and more we are seeing first-timers buy new condos with desirable locations and amenities instead of older large detached homes needing upgrading,” Lawby says. “Many first-timers today want to be skiing or golfing, not drywalling and painting.” “Changes to the financing rules by Central Mortgage and Housing Corporation (CMHC) means that first-time buyers are buying homes with 0-5 0own payments, something that was not possible until recently. Although prices are much higher than ten years ago in most centres, first-time buyers are taking advantage of this change to buy, even if it means stretching their budget a little more.” “In addition, interest rates continue to drive people to the market. Rates may increase between a quarter and a half of a percentage point later this year, but they will still be attractive,” Lawby says. “More and more Canadians can demonstrate to lenders that their jobs are stable and that they can qualify for mortgage payments and so the number of first time buyers continues to increase.” The CENTURY 21 National First-Time Buyers Survey was based on data and analysis on typical entry level homes in markets compiled by CENTURY 21 brokers across the country. 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 7,300 independently owned and operated franchised broker offices in 38 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.century21.ca Each of the communities surveyed has a home style that is “typical” of the homes that first time buyers are purchasing in that community. By tracking changes in this “typical house” category, rather than average or median prices, the CENTURY 21 House Price Survey offers a more accurate picture of first time buyer preferences. Additional details, including house descriptions and amenity preferences for first time buyers, are available on the Century 21 Canada Limited Partnership website at http://www.century21.ca/press -30- National Contact: ● Erin Airton Telephone: ● (604) 739-7500 Email: ● eairton@hoggan.com

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