Following a period of frenzied activity in the spring, back-to-back interest rate hikes have caused a decline in Canada's housing market. Home sales dropped 0.7% in July, and although the MLS Home Price Index (HPI) rose 1.1%, economists predict that prices will continue to moderate in the coming months. High interest rates have also made mortgage rates remain high, making affordability out of reach for many first-time buyers. Despite the market being more balanced, fundamental imbalances have caused some cities to have a reversal in affordability.