Teranet House Price Index - May 2014

HOME PRICES UP 0.8% IN MAY In May the Teranet-National Bank National Composite House Price Index™ was up 0.8% from the previous month. This increase, though substantial in itself, was the fifth smallest for May in the 16 years covered by the index. The countrywide composite index rose to an all-time high, but only three of the 11 metropolitan markets surveyed did the same. Prices were up from the previous month in seven markets and by more than the national average in five. The 3.1% monthly gain in Halifax was the largest in the history of that market. Prices rose 2.0% in Hamilton, 1.6% in Quebec City, 1.3% in Toronto, 1.1% in Calgary, 0.6% in Edmonton and 0.5% in Montreal. Calgary's advance was the fourth in a row exceeding 1%, taking prices to a new high. New records were also reached in Hamilton and Toronto. Prices were unchanged from the month before in Ottawa-Gatineau and Vancouver. The reading for Vancouver ended 12 consecutive months of rising prices. Prices were down from the previous month in Victoria (−0.1%) and Winnipeg (−0.3%). Teranet – National Bank National Composite House Price Index™ Contact Us For general enquiries: info@housepriceindex.ca For licenses covering all index-linked products, please contact: Simon Côté 514 879-5379 Website www.housepriceindex.ca

Since in May 2013 the monthly rise of the composite index was 1.1%, this May's 0.8% rise meant that 12 month home price inflation decelerated 0.3 percentage points to 4.6%, where it was in March. For the third month in a row, prices were down from a year earlier in all four markets east of Toronto: Quebec City (−1.6%), Ottawa-Gatineau (−1.4%), Montreal (−1.2%) and Halifax (−0.4%). In Victoria prices were flat from a year earlier. The 12-month rise trailed the countrywide average in Winnipeg (+1.0%) and Edmonton (+2.6%) and led it in Hamilton (+5.9%), Toronto (+6.0%), Vancouver (+8.2%) and Calgary (+8.7%). The softness of prices east of Toronto is consistent with the excess supply prevailing in the resale markets of these metropolitan areas. That being said, market conditions are generally balanced elsewhere, and are even tight in Calgary. Teranet – National Bank House Price Index™ The historical data of the Teranet – National Bank House Price Index™ is available at www.housepriceindex.ca. Metropolitan area Index level May % change m/m % change y/y Calgary 181.29 1.1 % 8.7 % Edmonton 175.85 0.6 % 2.6 % Halifax 142.07 3.1 % -0.4 % Hamilton 148.80 2.0 % 5.9 % Montreal 149.16 0.5 % -1.2 % Ottawa 139.50 0.0 % -1.4 % Quebec 175.54 1.6 % -1.6 % Toronto 157.16 1.3 % 6.0 % Vancouver 180.47 0.0 % 8.2 % Victoria 133.79 -0.1 % 0.0 % Winnipeg 195.51 -0.3 % 1.0 % National Composite 6 162.16 0.8 % 5.1 % National Composite 11 162.50 0.8 % 4.6 % The Teranet–National Bank House Price Index™ is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index. This is known as the repeat sales method; a complete description of the method is given atwww.housepriceindex.ca The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.168 trillion, or 53% of the Canadian aggregate value of $2.207 trillion. All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005. By: Marc Pinsonneault Senior Economist Economics and Strategy Group National Bank of Canada Teranet - National Bank House Price Index™ thanks the author for their special collaboration on this report. 1 Value of Dwelling for the Owner-occupied Non-farm, Non-reserve Private Dwellings of Canada.

Teranet House Price Index - April 2014

HOME PRICES UP 0.5% IN APRIL In April the Teranet-National Bank National Composite House Price Index™ was up 0.5% from the previous month, following a flat March. Though the gain might appear robust, it must be said that apart from the recession in 2009, the composite index always advanced in April, the average monthly increase having been 0.9%. Last month's advance is indeed the third weakest for April outside a recession since 1999. Though the countrywide composite index rose to an all-time high, only four of the 11 metropolitan markets surveyed did the same. Prices were up from the previous month in nine markets. Calgary's 1.5% advance was the third in a row exceeding 1%, taking that market to a new high. Montreal's monthly gain of 0.8% was far from making up the ground lost in March. Prices in Hamilton, Halifax and Ottawa-Gatineau were up 0.7% on the month. The rise in the national capital region ended a run of seven monthly retreats. The rise in Halifax left its index still below the January reading. The monthly gain was 0.6% in Edmonton, 0.5% in Vancouver (the only city whose prices have risen for 12 consecutive months, also to a new high), 0.4% in Winnipeg and 0.3% in Toronto. These last two markets reached new highs although their advances trailed the countrywide average. Two markets were down from the previous month, Quebec City (−0.5%) and Victoria (−1.0%). Teranet – National Bank National Composite House Price Index™ Contact Us For general enquiries: info@housepriceindex.ca For licenses covering all index-linked products, please contact: Simon Côté 514 879-5379 Website www.housepriceindex.ca

Since in April 2013 the monthly rise of the composite index was the smallest on record (+0.2%), the rather modest advance of April 2014 resulted in an acceleration of 12 month home price inflation to 4.9% from 4.6%. However, for the first time since October 2010, prices were down from a year earlier in five of the 11 markets, including all four of those east of Toronto: Halifax (−3.5%), Quebec City (−2.4%) and Montreal and Ottawa-Gatineau (−0.4%). The fifth market with 12-month deflation was Victoria (−0.7%). In striking contrast were 12-month gains of 10.0% in Calgary and 9.0% in Vancouver. Toronto (+5.8%) and Hamilton (+5.3%) also pulled the cross-country average higher. Trailing the average were Edmonton (+4.0%) and Winnipeg (+2.5%). The softness of prices east of Toronto is consistent with the excess supply prevailing in the resale markets of these metropolitan areas. Teranet – National Bank House Price Index™ The historical data of the Teranet – National Bank House Price Index™ is available at www.housepriceindex.ca. Metropolitan area Index level April % change m/m % change y/y Calgary 179.39 1.5 % 10.0 % Edmonton 174.88 0.6 % 4.0 % Halifax 137.75 0.7 % -3.5 % Hamilton 145.92 0.7 % 5.3 % Montreal 148.37 0.8 % -0.4 % Ottawa 139.49 0.7 % -0.4 % Quebec 172.74 -0.5 % -2.4 % Toronto 155.15 0.3 % 5.8 % Vancouver 180.52 0.5 % 9.0 % Victoria 133.88 -1.0 % -0.7 % Winnipeg 196.00 0.4 % 2.5 % National Composite 6 160.94 0.6 % 5.5 % National Composite 11 161.28 0.5 % 4.9 % The Teranet–National Bank House Price Index™ is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index. This is known as the repeat sales method; a complete description of the method is given atwww.housepriceindex.ca The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.168 trillion, or 53% of the Canadian aggregate value of $2.207 trillion. All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005. By: Marc Pinsonneault Senior Economist Economics and Strategy Group National Bank of Canada

Teranet HPI - February 2014

HOME PRICES UP 0.3% IN FEBRUARY In February the Teranet-National Bank National Composite House Price Index™ was up 0.3% from January. For the second month in a row, prices for Canada as a whole rose to an all-time high, though new records were set in only two of the 11 metropolitan markets surveyed - Vancouver (for a fourth straight month) and Calgary (for the first time since September 2007). Since in February 2013 the index was down 0.2% from the month before, the increase of February 2014 resulted in an acceleration of 12 month home price inflation to 5.0% from 4.5%. The gain from a year earlier was well above the cross-country average in two of the 11 markets, Calgary (9.6%) and Vancouver (7.7%). It was slightly above the average in Toronto (6.1%) and Edmonton (5.3%), equal to the average in Hamilton (5.0%) and below it in Winnipeg (3.5%) and Montreal (1.9%). In Halifax (−4.7%) and Ottawa-Gatineau (−0.6%), prices were down from a year earlier for a second consecutive month. In Victoria (−3.4%), home prices have been down from a year earlier for 12 months now. Quebec City posted its first 12 month deflation in 15 years (−2.0%). It is the first time since October 2009 that there is price deflation in at leat four of the regions covered. Teranet – National Bank National Composite House Price Index™ Contact Us For general enquiries: info@housepriceindex.ca For licenses covering all index-linked products, please contact: Simon Côté 514 879-5379 Website www.housepriceindex.ca

In February the east-west dichotomy became more pronounced than ever. Home prices were up from the month before in all five markets of Western Canada - Calgary (1.1%), Vancouver and Victoria (0.9%), Edmonton (0.6%) and Winnipeg (0.5%). The rise in Victoria ended a run of four consecutive monthly declines. For Vancouver it was the 10th consecutive monthly increase. In the six markets of central and eastern Canada, the only monthly rise was in Montreal (0.7%), the second advance after six months of flat or declining prices. Prices were down 0.1% in Toronto, making February the fourth month without a gain in the last six. For Ottawa-Gatineau (−0.8%) it was the sixth decline in a row, for Quebec City (−1.7%) the sixth in seven months. For Halifax (−1.7%) it was the third decline in a row. Teranet – National Bank House Price Index™ The historical data of the Teranet – National Bank House Price Index™ is available at www.housepriceindex.ca. Metropolitan area Index level February % change m/m % change y/y Calgary 174.34 1.1 % 9.6 % Edmonton 173.18 0.6 % 5.4 % Halifax 135.69 -1.7 % -4.7 % Hamilton 145.97 -0.5 % 5.0 % Montreal 149.97 0.7 % 1.9 % Ottawa 139.29 -0.8 % -0.6 % Quebec 173.53 -1.7 % -2.0 % Toronto 154.67 -0.1 % 6.1 % Vancouver 178.47 0.9 % 7.7 % Victoria 134.70 0.9 % -3.4 % Winnipeg 194.84 0.5 % 3.5 % National Composite 6 159.99 0.3 % 5.6 % National Composite 11 160.41 0.3 % 5.0 % The Teranet–National Bank House Price Index™ is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index. This is known as the repeat sales method; a complete description of the method is given atwww.housepriceindex.ca The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.168 trillion, or 53% of the Canadian aggregate value of $2.207 trillion. All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005. By: Marc Pinsonneault Senior Economist Economy & Strategy Group National Bank of Canada Teranet - National Bank House Price Index™ thanks the author for their special collaboration on this report.

Teranet House Price Index - February 2014

HOME PRICES UP 0.4% IN JANUARY In January the Teranet-National Bank National Composite House Price Index™ was up 0.4% from December. This advance took the composite index to an all-time high, though individual indexes reached all-time highs for only two of the 11 metropolitan markets surveyed, Toronto and Vancouver. Since in January 2013 the index was down from the month before, the increase of January 2014 resulted in an acceleration of 12 month home price inflation to 4.5% in January from 3.8% in December. The gain from a year earlier exceeded the cross-country average in four of the 11 markets: Vancouver (7.5%), Calgary (7.1%), Toronto (5.8%) and Hamilton (5.1%). It was close to the average in Edmonton (4.4%) and Winnipeg (3.9%). It was minimal in Montreal (0.8%) and Quebec City (0.6%). Prices were down from a year earlier in Victoria (−5.7%), Halifax (−2.9%) and Ottawa-Gatineau (−0.6%). The 12-month decline was a first for Ottawa-Gatineau, the 11th straight for Victoria and the fourth in six months for Halifax. Teranet – National Bank National Composite House Price Index™ Contact Us For general enquiries: info@housepriceindex.ca For licenses covering all index-linked products, please contact: Simon Côté 514 879-5379 Website www.housepriceindex.ca

The 0.4% advance of the composite index from December to January was the largest monthly rise in five months. Over this period, it is also the first time that a majority of the markets surveyed showed prices up from the month before. Vancouver (+1.1%), Toronto (+0.5%) and Quebec City (+0.5%) led the composite index. Calgary equalled it. Hamilton prices were up 0.3%, Winnipeg and Montreal prices 0.2%. Edmonton was flat on the month. Prices fell 0.3% in Victoria, 1.1% in Ottawa-Gatineau and 1.7% in Halifax. The January rises in Montreal and Quebec City interrupted runs of five consecutive monthly declines. For Ottawa-Gatineau it was the fifth straight monthly decline, for Victoria the fourth and for Halifax the second. For Vancouver it was a ninth straight monthly rise, for the composite index the 10th in 11 months. Teranet – National Bank House Price Index™ The historical data of the Teranet – National Bank House Price Index™ is available at www.housepriceindex.ca. Metropolitan area Index level January % change m/m % change y/y Calgary 172.42 0.4 % 7.1 % Edmonton 172.33 0.0 % 4.4 % Halifax 138.06 -1.7 % -2.9 % Hamilton 146.63 0.3 % 5.1 % Montreal 148.98 0.2 % 0.8 % Ottawa 140.42 -1.1 % -0.6 % Quebec 176.52 0.5 % 0.6 % Toronto 154.80 0.5 % 5.8 % Vancouver 176.94 1.1 % 7.5 % Victoria 133.48 -0.3 % -5.7 % Winnipeg 193.96 0.2 % 3.9 % National Composite 6 159.45 0.5 % 5.0 % National Composite 11 159.93 0.4 % 4.5 % The Teranet–National Bank House Price Index™ is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index. This is known as the repeat sales method; a complete description of the method is given atwww.housepriceindex.ca The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.168 trillion, or 53% of the Canadian aggregate value of $2.207 trillion. All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005.