This presentation was prepared for the Greater Vancouver Home Builders Association as a review of the housing market in 2009.

1. Right Product, Right Time, Right Place What to Prepare for In 2010

2. Historical Absorption and Trends GVHBA Trends 2010 1 ? Source of Historical Stats: MPC Intelligence

3. Historical Absorption and Trends GVHBA Trends 2010 2 ? Source of Historical Stats: MPC Intelligence

4. Real Estate Board of Greater Vancouver Average Price Graph January 1977 to November 2009 GVHBA Trends 2010 3 Source: Real Estate Board of Greater Vancouver

5. Historical Absorption and Trends GVHBA Trends 2010 4 Source of Historical Stats: MPC Intelligence

6. At Q3 New Multi Family Product Absorption (Condominium & Townhome) Total Absorption: 4,861 Units NORTH SHORE 166 TRI-CITIES 573 BURNABY 373 VANCOUVER 1,196 PITT MEADOWS/MAPLE RIDGE 164 NEW WEST 196 RICHMOND 601 SURREY/ WHITE ROCK 1,233 GVHBA Trends 2010 5 ABBOTSFORD LANGLEY 359

7. Estimated New Multi Family Product Absorption (Condominium & Townhome) Estimated 2009 Absorption: 6,600-7,200 Units NORTH SHORE 180 TRI-CITIES 725 BURNABY 550 VANCOUVER 1,500 PITT MEADOWS/MAPLE RIDGE 225 NEW WEST 225 RICHMOND 800 SURREY/ WHITE ROCK 1,800 GVHBA Trends 2010 6 ABBOTSFORD LANGLEY 675

8. Estimated Standing Inventory (Condominium) Total Condominium Units Completed and Available for Sale: 1,103 Units NORTH SHORE 67 TRI-CITIES 81 BURNABY 112 VANCOUVER 215 PITT MEADOWS/MAPLE RIDGE 110 NEW WEST 69 RICHMOND 27 SURREY/ WHITE ROCK 306 GVHBA Trends 2010 7 ABBOTSFORD 96 LANGLEY 20

9. Standing Inventory Remains Low by Historical Standards GVHBA Trends 2010 8

10. YTD Housing Starts (CMHC) Total Housing Starts YTD 2009 Vancouver: 1,379 Surrey: 3,333 Burnaby : 667 Richmond: 669 Langley: 596 SF: 72 MF: 8 SF: 69 MF: 207 SF: 137 MF: 313 SF: 216 MF: 207 SF: 151 MF: 516 SF: 402 MF: 977 SF: 37 MF: 164 SF: 123 MF: 546 SF: 103 MF: 115 SF: 1021 MF: 1154 SF: 164 MF: 432 SF: 69 MF: 127 GVHBA Trends 2010 9

11. Submarket Specific Housing Starts YTD (CMHC) Langley – Historically low S.F. starts in relation to multi-family Tri Cities & Surrey - A relatively high number of S.F. to multi-family starts SF: 137 MF: 313 SF: 1021 MF: 1154 GVHBA Trends 2010 10 SF: 161 MF: 432

12. 2006 to 2016 Estimated Population Growth Per Year (BC Stats) Estimated Pop. Growth/Year Surrey: 10,242 Vancouver: 8,007 Tri Cities: 5,635 GVHBA Trends 2010 11 10,242 1,237 5,635 4,468 8,007 3,102 1,295 1,773 3,270 3,161

13. Change in Values Year over Year GVHBA Trends 2010 12 Resale Values almost back at peak levels

14. Change in Values Year over Year GVHBA Trends 2010 13 Resale Values almost back at peak levels

15. Construction Volumes Will Slow GVHBA Trends 2010 14

16. Year over Year % Change in Housing Starts YTD By Submarket (CMHC) Overall Metro Vancouver housing starts down 64% (Jan – Sept) year over year. (CMHC) Total housing starts Jan – Nov in Metro Vancouver: 7200 (CMHC) -78% -49% -59% -83% -72% -50% -41% -66% -67% GVHBA Trends 2010 15 -9% -81% 0% 57%

17. Monthly Mortgage Payment based on Current Benchmark Price – 25% down, 3.99% rate compounded semi-annually, 5 year term, 25 year amortization SF: $3,429 CO: $1,490 TRI-CITIES SF: $1,677 TH: $1,183 CO: $966 SF: $2,968 TH: $1,818 CO: $1,330 SF: $1,918 TH: $1,183 VANCOUVER CO: $1,117 SF: $2,985 TH: $1,857 CO: $1,251 SURREY GVHBA Trends 2010 16 SF: $1,978 SF: $1,658 TH: $1,058 CO: $810 SF: $1,958 TH: $1,226 CO: $931 WHITE ROCK

18. Historical Absorption and Trends GVHBA Trends 2010 17 Source of Historical Stats: MPC Intelligence

19. Monthly Mortgage Payment based on Current Benchmark Price – 25% down, 3.99% rate compounded semi-annually, 5 year term, 25 year amortization GVHBA Trends 2010 18 SURREY WHITE ROCK

20. Monthly Mortgage Payment based on Current Benchmark Price – 25% down, 3.99% rate compounded semi-annually, 5 year term, 25 year amortization VANCOUVER GVHBA Trends 2010 19

21. Monthly Mortgage Payment based on Current Benchmark Price – 25% down, 3.99% rate compounded semi-annually, 5 year term, 25 year amortization GVHBA Trends 2010 20 TRI-CITIES

22. Household Growth vs. Housing Starts GVHBA Trends 2010 21

23. Average Housing Starts from 2005-2008Source: CMHC 640 2,033 941 2,167 4,513 390 1,942 4,900 1,183 GVHBA Trends 2010 22

24. 2006 to 2016 Estimated Demand for New Housing (Rental and Ownership) per Year(Metro Vancouver Regional Growth Strategy) 400 1,850 505 1,500 1,790 390 1,050 3,330 1,150 GVHBA Trends 2010 23

25. GVHBA Trends 2010 24

26. Monthly Mortgage Payment based on Current Benchmark Price – 25% down, 3.99% rate compounded semi-annually, 5 year term, 25 year amortization SF: $3,429 CO: $1,490 TRI-CITIES SF: $1,677 TH: $1,183 CO: $966 SF: $2,968 TH: $1,818 CO: $1,330 SF: $1,918 TH: $1,183 VANCOUVER CO: $1,117 SF: $2,985 TH: $1,857 CO: $1,251 SURREY GVHBA Trends 2010 25 SF: $1,978 SF: $1,658 TH: $1,058 CO: $810 SF: $1,958 TH: $1,226 CO: $931 WHITE ROCK

27. Historical Absorption and Trends GVHBA Trends 2010 26 Source of Historical Stats: MPC Intelligence

28. 27 GVHBA Trends 2010