Although prices continue to rise in Canada's two most expensive housing markets, the pace of growth has been slowing. The data possibly reflects the impact of recent policy measures aimed at stabilizing demand and discouraging speculative activity. Before governments and prospective buyers can cheer, it is too early to tell if we're heading for a soft or a hard landing, where the latter can create much greater issues than the ones we began with. Coupled with the recent rate hike from the Bank of Canada and their upbeat tone which implies at least one more hike this year, our view is that the deceleration has just begun.