1. Housing market intelligence you can count on Canada Mortgage and Housing Corporation Housing Market Outlook Third Quarter 2012 October 27, 2012 Mathieu Laberge Deputy Chief Economist

2. Housing market intelligence you can count on 2 Summary of the presentation Drivers of housing demand  Economic assumptions Despite global uncertainty, Canada’s economic fundamentals remain positive.  Interest rate outlook Interest rates remain near historical lows. Housing Market Outlook  Existing home market The resale market, along with resale prices, is expected to remain stable and most local markets will see balanced conditions.  New home market The new home market is expected to moderate throughout the remainder of 2012 and in 2013.

3. Housing market intelligence you can count on 3 Housing and economic outlook for 2012 ForecastHighLow Total Housing Starts207,200217,000196,800 Singles83,50087,70078,900 Multiples123,700129,300117,900 MLS® Sales466,600485,200442,300 MLS® Price$368,000$378,400$351,300 5-Year Mortgage Rate5.26%5.40%5.10% GDP Growth Rate2.1%2.6%1.9% Employment Growth1.3%1.7%1.0% Unemployment Rate7.3%7.1%7.5%

4. Housing market intelligence you can count on 4 Stability is expected in MLS ® sales in 2012 Source: Canadian Real Estate Association, (F) Forecast by CMHC

5. Housing market intelligence you can count on 5 Renovation spending growth to moderate in 2012 Source: Statistics Canada, (F) Forecast by CMHC

6. Housing market intelligence you can count on 6 Renovation spending growth to moderate in 2012 Renovation Expenditure Breakdown (millions of dollars and annual percentage change) Source: Statistics Canada, (F) Forecast by CMHC

7. Housing market intelligence you can count on 7 Renovation spending growth to moderate in 2012 Source: Statistics Canada, (F) Forecast by CMHC Total Renovation Expenditure per province (millions of dollars and annual percentage change)

8. Housing market intelligence you can count on 8 Thank You!! Contact Information: Mathieu Laberge, Deputy Chief Economist, CMHC (613) 742-5342 mlaberge@cmhc-schl.gc.ca