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Canadian homebuyers remain undaunted in 2013,
as housing sales and average price approach five-year high

Major residential real estate markets poised for further growth in 2014

Laval, QC (December 11, 2013) -- Canadian consumers remained remarkably steadfast in their determination to achieve homeownership in 2013, fuelling residential real estate sales and average price nationally to a five-year high, despite a spotty regional performance. Improved economic performance on both a national and global stage, combined with historically low interest rates and rising consumer confidence, should spark greater strength in 2014, with housing sales and values expected to further appreciate, according to a report released today by RE/MAX.

The RE/MAX Canadian Housing Market Outlook 2014 examined trends and developments in 25 major markets across the country. The report found that the number of homes sold is expected to match or exceed 2012 levels in almost two-thirds of markets (15/25) in 2013, led by strong activity in British Columbia, including Vancouver (up 10 per cent) and Kelowna (10 per cent). Quebec markets are expected to soften somewhat from year-ago levels, with Greater Montreal and Quebec City poised to record a nine percent and 12 per cent decline in sales respectively. The province experienced greater impact from stricter lending regulations and saw confidence hampered by labour challenges and weaker economic growth in 2013. Ninety-two per cent (23/25) of markets are set to experience average price increases by year-end 2013, with Hamilton-Burlington the country's frontrunner at 7.5 per cent, followed by Barrie and District at seven per cent, Calgary and St. John's at six per cent, and Greater Vancouver, Winnipeg and the Greater Toronto Area at five per cent. Montreal and Quebec City are anticipated to post modest average price gains of two and four per cent respectively.

The forecast for 2014 shows the upward trend gaining momentum, with values expected to climb yet again in 92 per cent (23/25) of centres, led by Greater Toronto at six per cent. Montreal should see average price plateau, while Quebec City is expected to mark a slight one per cent contraction. Strength and stability are forecast to characterize Canadian real estate in 2014, with sales estimates on par or above year-ago levels in all markets examined, led by Kelowna (10 per cent) and Calgary (nine per cent). The Quebec markets are expected to resume a growth trajectory in unit sales in 2014, both at two per cent.

Nationally, an estimated 466,000 homes will change hands in 2013, an increase of three per cent over the 453,372 sales recorded in 2012. Canadian home sales are expected to climb two per cent to 475,000 units by year-end 2014. The average price of a Canadian home is forecast to appreciate four per cent to $380,000 in 2013, up from $363,740 in 2012. Values are expected to continue to escalate in 2014, rising three per cent to $390,000 by year end.

"Housing markets proved incredibly resilient in 2013, particularly in light of the greater disparity in year-over-year performance that existed earlier in the year," says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec. "While activity proved weaker overall in Quebec, a more positive picture should emerge next year. Quebecers and Canadians overall have demonstrated a long-term mindset that bodes well for stability. Yet, they also value progress, and we expect that to translate again in 2014. Equity gains should continue to result in tangible leaps to larger homes or better neighbourhoods, as well as a growing wave of renovation and revitalization. Gains in equity markets may also serve to bolster activity, as paper wealth is converted to material wealth. We anticipate improved momentum going forward."

Regional disparities surfaced early in 2013, according to the RE/MAX Report, and were evident throughout the year. Alberta started the year with a bang, with both major markets bucking the national downward trending in sales. Homebuying activity in British Columbia, Saskatchewan, Manitoba, and Ontario kicked into high gear in July, with most centres expected to move ahead of 2012 levels by year end, led by Greater Vancouver, Kelowna, Victoria (six per cent), Windsor-Essex (six per cent), Edmonton (five per cent) and Hamilton-Burlington (five per cent). Yet, performance in Quebec and Atlantic Canada is forecast to fall short of 2012 levels. More consistent performance is expected in 2014, especially given economic projections for the East Coast and Quebec. Both regions should rebound in the new year, led by Halifax-Dartmouth (five per cent), Moncton (three per cent), Greater Montreal (two per cent) and Quebec City (two per cent).

"Inventory played a key role in keeping housing markets at an equilibrium in 2013 with supply largely meeting demand throughout the year," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "The anticipated run-up in inventory failed to materialize in most major centres. Prices remained healthy as a result, with steady upward momentum noted, particularly in the latter half of the year. The trend is forecast to continue, with average price appreciation expected to break existing records in 2014."

Although there are several factors that are expected to contribute to rising housing values on a national basis, one of the most pressing is build out. Nowhere is that more obvious than in Vancouver, where the mountains and the ocean have prevented further growth, and the Greater Toronto Area, where the greenbelt has stymied future development. As such, the availability of low-rise homes relative to the population is expected to contract, placing further pressure on prices. Vertical growth and its affordable price point is representative of the future.

"We are seeing an increasing focus on higher density developments across the country," says Dansereau. "While the trend is expected to gain traction in most major centres, we anticipate a softening in Quebec's condominium segment, until the current oversupply is absorbed."

On the whole, solid underpinnings continue to support healthy levels of real estate activity from coast to coast. Buyers appear to be realistic in their pursuits, and after several rounds of mortgage tightening, many are coming to the table better qualified, with larger downpayments and readjusted expectations. Imposed restrictions have had the desired effect. A sound framework is now in place to support steady and sustainable growth over the next several years. Existing inventory levels remain crucial to Canadian housing markets moving forward. The tightening currently demonstrated at entry-level price points as more first-time buyers make their way back into the market could translate into further price hikes down the road.

"The housing outlook remains healthy and positive," says Gurinder Sandhu, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. "Continued growth and expansion should characterize most residential markets in the year ahead. The appeal of residential real estate continues to resonate with Canadians, as a relatively low-risk, tangible asset that serves multiple purposes shelter, investment, and retirement fund rolled into one."

About the RE/MAX Network
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its brokers and franchisees the flexibility to operate their businesses with great independence. Over 90,000 agents provide RE/MAX a global reach of more than 90 countries. RE/MAX is Canada's leading real estate organization with approximately 19,000 sales associates and 750 independently-owned and operated offices nationwide. RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a subsidiary of RE/MAX Holdings, Inc. (NYSE:RMAX).

For more information about RE/MAX, to search home listings or find a broker in your community, please visit www.remax.ca.

Forward Looking Statements
This press release includes "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "intend", "expect", "estimate", "plan", "outlook", "poised," "should" and "project" and other similar words and expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Such risks include, without limitation, those described in the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation in RE/MAX Holdings Inc.'s registration statement on Form S-1 filed with the United States Securities and Exchange Commission ("SEC") and (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, and (3) changes in laws and regulations that may affect our business or the real estate market. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, RE/MAX Holdings Inc. does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. Investors are referred to in RE/MAX Holding Inc.'s registration statement on Form S-1 and subsequent reports filed with the SEC.

Data Source: Historical data is sourced from CREA or Local Real Estate Boards. Estimates and forecasts are based on the opinion of independent RE/MAX broker/owners and affiliates.

For more information:

Jessica Lavoie
RE/MAX Québec Inc.
450 668-7743
jessica.lavoie@remax-quebec.com
Elaine Mayrand / Jeanne Hébert
Massy Forget Langlois Public Relations
514 842-2455 ext. 24 / 23
emayrand@mflrp.ca / jhebert@mflrp.ca

RESIDENTIAL AVERAGE PRICE BY MARKET
2008 - 2014
Market 2008 2009 2010 2011 2012 2013E* % +/- 2014F** % +/-
 
BRITISH COLUMBIA
Great Vancouver $593 767 $592 441 $675 853 $779 730 $730 063 $765 000 5 $800 000 5
Victoria $484 898 $476 137 $504 561 $498 300 $484 164 $484 000 PAR $490 000 1
Kelowna $430 755 $400 450 $419 884 $404 756 $404 712 $397 000 -1 $405 000 2
 
ALBERTA
Edmonton $332 852 $320 378 $328 803 $325 395 $334 318 $345 000 3 $358 800 4
Calgary $407 149 $387 413 $398 764 $402 851 $412 315 $437 000 6 $448 000 2.5
 
SASKATCHEWAN
Regina $229 716 $244 088 $258 023 $276 469 $301 332 $312 000 3.5 $320 000 3
Saskatoon $287 777 $279 779 $296 378 $309 823 $331 867 $345 500 4 $356 000 3
 
MANITOBA
Winnipeg $196 940 $207 342 $228 706 $241 409 $255 058 $267 000 5 $275 000 3
 
ONTARIO
Hamilton-Burlington $280 790 $290 946 $311 683 $333 498 $360 059 $387 000 7.5 402 500 4
Kitchener-Waterloo $267 255 $266 385 $289 294 $301 010 $311 006 $320 000 3 $330 000 3
London-St. Thomas $210 888 $213 127 $228 114 $232 387 $238 822 $247 000 3 $250 000 1
Ottawa $290 483 $304 801 $328 439 $344 791 $352 610 $360 000 2 $367 000 2
Greater Sudbury $216 769 $203 941 $225 023 $234 544 $247 462 $254 000 2 $259 000 2
Greater Toronto $379 943 $395 460 $431 463 $465 412 $497 150 $520 000 5 $550 000 6
Barrie and District $264 034 $263 959 $281 961 $287 588 $299 685 $320 000 7 $330 000 3
St. Catharines $222 104 $225 421 $237 376 $244 630 $253 469 $258 000 2 $265 500 3
Kingston and Area n/a n/a n/a n/a $280 095 $286 000 2 $297 000 4
Windsor-Essex $162 599 $156 615 $163 054 $170 034 $175 581 $183 000 4 $190 000 4
 
QUEBEC
Greater Montreal $262 611 $274 787 $297 588 $313 997 $319 026 $324 000 2 $324 000 0
Quebec City $197 450 $212 203 $237 309 $247 088 $257 713 $267 000 4 $264 500 -1
 
NEW BRUNSWICK
Saint John $168 965 $179 762 $178 867 $177 328 $174 026 $181 000 4 $184 000 2
Moncton $143 173 $150 135 $152 257 $158 361 $158 107 $160 000 1 $165 000 3
 
NOVA SCOTIA
Halifax-Dartmouth $232 106 $239 158 $253 610 $260 950 $270 742 $276 000 2 $278 000 1
 
PRINCE EDWARD ISLAND
$139 944 $146 044 $147 196 $149 617 $152 250 $157 000 3 $161 700 3
 
NEWFOUNDLAND & LABRADOR
St. John's $187 571 $218 862 $251 191 $268 608 $285 529 $302 500 6 $317 600 5
 
CANADA $303 594 $320 367 $339 049 $363 346 $363 740 $380 000 4 $390 000 3
 
*Estimate **Forecast
Source: Historical values are sourced from CREA or Local Real Estate Boards. Estimates and forecasts are based on the opinions of independent RE/MAX broker/owners and affiliates.

RESIDENTIAL UNIT SALES BY MARKET
2008 - 2014
Market 2008 2009 2010 2011 2012 2013E* % +/- 2014F** % +/-
 
BRITISH COLUMBIA
Great Vancouver 25 149 36 257 31 144 32 936 25 445 28 000 10 29 000 2
Victoria 6 171 7 660 6 169 5 773 5 460 5 800 6 6 000 4
Kelowna 3 773 3 924 3 289 3 330 3 902 4 300 10 4 730 10
 
ALBERTA
Edmonton 17 369 19 139 16 403 16 963 17 641 18 500 5 19 400 5
Calgary 22 931 24 711 20 801 22 466 26 634 27 500 3 30 000 9
 
SASKATCHEWAN
Regina 3 338 3 704 3 581 3 909 3 922 3 700 -5 3 775 2
Saskatoon 3 522 3 822 3 558 4 027 4 171 4 200 1 4 200 0
 
MANITOBA
Winnipeg $11 854 11 509 11 572 12 297 12 094 12 300 2 12 300 0
 
ONTARIO
Hamilton-Burlington 12 110 12 680 12 934 13 932 13 035 13 700 5 14 300 4.5
Kitchener-Waterloo 6 047 6 347 6 389 6 252 6 212 6 300 1 6 300 0
London-St. Thomas 8 395 8 113 8 128 8 048 8 020 8 075 1 8 150 1
Ottawa 13 908 14 923 14 586 14 551 14 497 13 800 -5 13 900 1
Greater Sudbury 2 913 2 371 2 669 2 829 2 764 2 800 1 2 800 0
Greater Toronto 74 552 87 308 85 545 89 099 85 498 87 500 2 89 000 2
Barrie and District 4 058 4 326 4 105 4 228 4 576 4 650 2 4 850 4
St. Catharines 2 894 2 808 2 940 2 836 2 621 2 700 3 2 780 3
Kingston and Area n/a n/a n/a n/a 3 791 3 750 -1 3 900 4
Windsor-Essex 4 376 4 586 4 791 4 773 4 907 5 200 6 5 400 4
 
QUEBEC
Greater Montreal 40 440 41 753 42 299 40 357 40 089 36 500 -9 37 200 2
Quebec City 7 838 7 962 7 073 7 200 7 219 6 300 -12 6 425 2
 
NEW BRUNSWICK
Saint John 2 559 2 283 2 017 1 835 1 886 1 850 -2 1 870 1
Moncton 2 663 2 386 2 402 2 467 2 259 2 200 -3 2 275 3
 
NOVA SCOTIA
Halifax-Dartmouth 6 472 6 062 5 944 6 119 6 239 5 700 -9 6 000 5
 
PRINCE EDWARD ISLAND
1 413 1 404 1 487 1 521 1 614 1 600 -1 1 600 0
 
NEWFOUNDLAND & LABRADOR
St. John's 3 835 3 642 3 470 3 647 3 871 3 650 -6 3 650 0
 
CANADA 434 477 465 068 446 913 456 749 453 372 466 000 3 475 000 2
 
*Estimate **Forecast
Source: Historical values are sourced from CREA or Local Real Estate Boards. Estimates and forecasts are based on the opinions of independent RE/MAX broker/owners and affiliates.