Scotiabank Investment Thesis

20 Price Growth by Dwelling Type Single Family ■Townhouse Apartment Canadian Housing Market Engineered soft landing, stability expected in 2019 National: Sales and prices have rebounded and market conditions are in equilibrium¹: Average sales prices have increased in two consecutive months. Composite MLS Home Price Index2 is stable (top right chart) 。 Sales-to-new listings ratio at 54.7% in April 2019, well within the 44-64% range consistent with balanced housing demand and supply Greater Toronto: Conditions are largely balanced, which indicate steady near-term price gains Greater Vancouver: Sales activity remains weak after new taxes came into effect on January 1, 2019 (bottom right chart). Expect a return to positive price and sales gains later this year supported by strong job creation and immigration 20 15 10 5 0 MLS Home Price Index, aggregate, -5 y/y % change 2017 140 Canada Mar-19 Apr-19 Apr-19 120 m/m* m/m* y/y** Sales (% change) 2.3 3.6 4.2 100 New listings (% change) 3.4 2.7 2.8 Average price (% change) 1.4 1.4 0.3 60 80 Mar-19 Apr-19 Sales-to-new listings ratio (level)* 60 54.3 54.8 Months inventory (level)* 5.5 5.3 *Seasonally adjusted **Not seasonally adjusted 2018 Composite 2019 Toronto & Vancouver Home Sales home sales, 000s of units annualized, SA Greater Toronto مین 60 Greater Vancouver 40 20 0 10 11 12 13 14 15 1 Sales and listings figures reported in seasonally-adjusted m/m terms, while MLS HPI growth rates reported as non-seasonally-adjusted y/y. Data as of April, 2019 2 Measure of real estate price appreciation that removes distortions related to variations in the mix of sales across unit types 3 Sources for charts and table: Scotiabank Economics, CREA. Actual 10-year avg. 16 17 18 19 Scotiabank® 41

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