International Banking and Canadian Economy Overview slide image

International Banking and Canadian Economy Overview

Canadian Housing Market Engineered moderation of price and volume Significant Moderation in Price Growth* 25 Aggregate Composite MLS Home Price Index Y/Y Percentage Change Volume of Home Sales Near 10-Year Average* 50 Units, 000s 45 Monthly home sales 20 15 10 5 0 -5 -10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Sources: Scotiabank Economics, CREA. *Actual not seasonally adjusted Canada's Five Largest Metropolitan Areas* 10 MLS Home Price Index Benchmark Price Y/Y Percentage Change 5 4.43 0 -5 -10 Average -0.88 -9.41 -15 GTA GVA 7.29 Montreal Sources: Scotiabank Economics, CREA. *Actual - not seasonally adjusted 40 35 30 25 прими 10-year monthly moving avg. 20 20 T T 07 08 09 10 11 12 13 14 15 16 17 18 19 Sources: Scotiabank Economics, CREA. *Seasonally adjusted Decline in Share of High Risk Mortgages 25 % Share of new mortgages with a loan-to-income ratio greater than 450% 20 15 -3.49 -3.21 10 Calgary Edmonton 5 0 Mortgage insurance rules tightened Guideline B-20 revised Dec-14 Jun-15 Dec-15 Jun-16 High-ratio mortgages Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Low-ratio mortgages Total mortgages Source: Bank of Canada Financial System Review 2019 1 Sources for charts and table: Bank of Canada Financial System Review 2019 (Data as of December 31, 2018); CREA; MLS Home Price Index growth rates reported as non seasonally-adjusted y/y (Data as of July 2019) Scotiabank® 52
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