Investor Presentaiton

Canadian Housing Market Higher interest rates and new regulations driving soft landing • Significant moderation in price growth since 2017 (top right chart).. 。 The composite national MLS Home Price Index rose 0.8% Y/Y, with gains concentrated in lower-cost apartments and townhomes. Average price fell 5.5% Y/Y 。 Three of Canada's five largest cities experienced year-over-year price declines (Vancouver, Calgary, Edmonton) Resale volumes down 4% Y/Y (table below) 。 The sales-to-new listings ratio rose to 56.7% in the month, a level consistent with balanced demand-supply conditions Greater Toronto Market: Average home price increased 2.7% from a year ago. Resale volumes have moderated and are below 10-year average (lower right chart) • Greater Vancouver Market: Average home price fell 4.5% from a year ago-led by weakness in the single-family home segment—but home purchases climbed 1.2% Price Growth by Dwelling Type² 25 20 15 10 Apartment 5 Single- Family Townhome 0 -5 MLS Home Price Index, aggregate, y/y % change -10 16 17 18 19 Toronto & Vancouver Home Sales2 Canada² Sales (% change) New listings (% change) Average price (% change) MLS HPI (% change)** Sales-to-new listing ratio (level)* Months inventory (level)* *Seasonally adjusted **Not seasonally adjusted 140 home sales, 000s of units, annualized Jan-19 Dec-18 Jan-19 120 Greater Toronto m/m* m/m* y/y 100 3.6 -2.0 -4.0 1.0 -0.5 8.0 180 80 -2.9 -1.4 -5.5 -0.5 -0.3 0.8 60 60 Jan-19 Dec-18 Jan-18 Greater Vancouver 56.7 55.3 64.2 40 40 5.3 5.5 4.9 20 20 1 Sales and listings figures reported in seasonally-adjusted m/m terms, while MLS HPI growth rates reported as non seasonally-adjusted y/y 2 Sources for charts and table: Scotiabank Economics, CREA 0 11 12 13 14 15 Actual 10-Year Avg. 16 17 18 Scotiabank® 39

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