Earnings and Dividend Growth Report slide image

Earnings and Dividend Growth Report

Canadian Housing Market Strength Strong demand continues to confront insufficient supply Housing Market is Historically Undersupplied 90 0.9 Ratio of total home completions on 18-month rolling basis relative to population change 0.8 0.7 mm 1982-pres. avg. 0.6 0.5 0.4 0.3 84 87 90 93 96 99 02 05 08 11 14 17 20 Sources: Scotiabank Economics, Statistics Canada. Canada's Five Largest Metropolitan Areas* 13 MLS Home Price Index Benchmark 11 Price Y/Y Percentage Change 11.81 9 7 8.18 5 Average 3.72 3 3.46 1 -1 80 70 60 60 50 40 40 Listings Falling More Rapidly than Sales sa sales-to-new listings ratio, % Sellers' Market Buyers' Market 30 30 04 06 08 10 12 14 16 18 20 Sources: Scotiabank Economics, CREA. Policy Support Providing Large Assistance to Households 2.5 % 2.0 1.5 1.0 -2.83 -2.03 0.5 0.0 Edmonton 20 -5 -3 35 GTA GVA Montreal Calgary Sources: Scotiabank Economics, CREA. Data reflects June 2020 *Actual - not seasonally adjusted; Hypothetical arrears rate on mortgages simulated by BoC for 19% fall in GDP in 2020 Arrears without existing household support measures Arrears with existing support measures 21 22 Sources: Scotiabank Economics, Bank of Canada Financial System Review. 75
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