A stable economy will sustain elevated levels of new home construction in Manitoba. Provincial housing
starts will eclipse historical averages during the next two years, reaching 5,800 units in 2008 and 5,900
units in 2009. Including last years activity, this will represent the best three-year performance for
Manitoba builders in over 20 years.

Manitobas economy is forecast to expand by 2.9 per cent in 2008 and 2.6 per cent
in 2009, marking the sixth year in succession the provincial economy grows by 2.5
per cent or more. Capital projects and domestic spending will be key drivers of growth over the forecast
horizon. With net migration and job creation among historical highs, retailers will enjoy recurring gains in
personal spending.

Accordingly, the unemployment rate will be maintained at near historical lows, averaging 4.3 per cent over
the forecast period and will bolster consumer confidence. The low unemployment rate relative to other
provinces is also resulting in fewer people leaving Manitoba in search of work.

Boosted by heightened levels of net migration, existing home sales will set a new high of 14,100 units in 2008. Despite some additional selection in late 2008 and into 2009, the strong growth in listings required to achieve significant sales gains will likely not materialize. In addition, persistent price gains could limit choice for first-time and low equity buyers, resulting in another modest rise in sales next year. At 14,250 units, 2009 will mark the eighth year in succession that a sales record was achieved.

In 2008, Manitobas resale market will experience another strong year of price growth, coming just short of
the double digit gains that have been the norm for the last five years. Strong demand combined with a
shortage of listings will push prices up 9.8 per cent this year, reaching an average of $185,500. In 2009,
an increase in active listings will provide more choice for buyers and weaken the pace of price growth to
below six per cent.

Average
Residential
Resale Price

Mortgages
approved by
lenders,
residential 2006

Life and
companies
other

2007 E = estimated by the CMHC
* Canada calculation excludes Yukon and Northwest Territories
Data based on application received date
Mortgage approval data are gross and may not fully capture lending activities of credit unions, caisses populaires, other smaller
institutions and privately-insured loans in some areas
Quebec data is understated due to low response rate to the surveys in that province.
*Conventional Lending data only