Montreal’s real estate market has been one of the most resilient in Canada, continuing to see price growth even as other major cities experience sales slowdowns and affordability challenges.
While Toronto and Vancouver are facing declining sales and shifting buyer sentiment, Montreal’s home prices increased by 5.6% year-over-year, reaching an average of $580,000 by the start of 2025.
The Numbers: Steady Growth in a Changing Market
Montreal recorded 3,250 home sales in December 2024, a slight 3% increase from the previous year. While many Canadian cities have seen declines in transactions, Montreal’s stable sales figures suggest that demand remains strong. The average home price climbed to $580,000, with detached homes reaching $710,000 and condos averaging $435,000.
Inventory levels remain relatively low, with new listings increasing by just 6% year-over-year. Compared to cities like Toronto, where listings rose by 16.4%, Montreal’s smaller increase in supply has helped keep prices stable. With fewer homes available, buyers are still competing for desirable properties, sustaining price growth across multiple segments.
Why Montreal’s Market is Still Growing
Montreal’s housing market has remained strong due to affordability advantages, strong rental demand, and continued population growth. Compared to Toronto and Vancouver, home prices in Montreal are significantly lower, making it one of the last major Canadian cities where buyers can still find relatively affordable housing. The lower cost of living and more accessible home prices have made the city an attractive alternative for buyers priced out of other markets.
Montreal’s rental market has also played a role in sustaining demand for properties. The average rent for a one-bedroom apartment reached $1,900 in December 2024, reflecting a 5.2% increase year-over-year. With rental demand rising and vacancy rates remaining low, many investors are choosing to hold onto their properties rather than sell, limiting supply and supporting price stability.
Population growth has further fueled the city’s real estate activity. Montreal continues to attract both domestic and international migrants, with immigration numbers rising steadily. Many newcomers enter the rental market first but eventually transition to homeownership, keeping demand for entry-level housing high. The city’s growing tech, healthcare, and finance sectors have also strengthened the local economy, ensuring stable employment levels that support homebuying activity.
A Buyer’s Perspective: Navigating Montreal’s Market
Emma and Louis, a couple in their mid-30s, had been renting in Le Plateau-Mont-Royal for five years while saving for a down payment. In late 2024, they purchased a three-bedroom semi-detached home in Rosemont for $720,000, slightly above their initial budget. While they had hoped to buy for a lower price, they recognized that Montreal’s market was continuing to appreciate and decided to act before prices climbed even further.
Their experience highlights the mindset of many buyers who are feeling pressure to purchase now before affordability worsens. With limited inventory and steady demand, waiting too long can mean facing even higher prices down the road.
How Sellers Are Benefiting from the Market Momentum
For sellers, Montreal’s rising prices and sustained buyer interest present a favorable environment. Unlike markets where increased listings are creating downward pressure, Montreal’s moderate supply growth means that well-priced homes are still selling quickly. Properties in high-demand neighborhoods like Outremont, Verdun, and Côte-des-Neiges are seeing multiple offers, particularly for detached and semi-detached homes.
Sellers who price their homes competitively can expect strong interest, though buyers are becoming more cautious as prices rise. Some sellers are using the current momentum to move up in the market, selling smaller homes and upgrading to larger properties while mortgage rates are still relatively high but expected to drop further in 2025.
The Role of Interest Rates in Montreal’s Housing Market
The Bank of Canada’s recent interest rate cuts have provided some relief to Montreal buyers, though borrowing costs remain higher than in previous years. With fixed mortgage rates now averaging 4.6%, more buyers are returning to the market, but affordability remains a challenge for those at the lower end of the income spectrum.
If further rate cuts occur in 2025, demand could increase even more, potentially pushing home prices higher. However, if the economic outlook worsens and job growth slows, Montreal’s housing market could see a gradual cooling rather than continued rapid appreciation.
What to Expect in 2025
Experts predict that Montreal’s housing market will remain stable, with home prices increasing by another 3-5% throughout the year. While rising prices may slow some segments of the market, strong rental demand, population growth, and continued buyer interest are expected to keep Montreal’s real estate sector healthy.
For buyers, the current environment means acting strategically. Those looking for affordability may need to explore emerging neighborhoods where price appreciation has not yet peaked. Areas like Hochelaga-Maisonneuve and LaSalle are becoming increasingly popular for buyers seeking value outside of the downtown core.
For sellers, pricing homes correctly and ensuring properties are well-prepared for the market will be crucial to securing competitive offers. With inventory levels still relatively low, attractive properties in desirable neighborhoods are likely to sell quickly, but overpriced homes may sit longer as buyers become more selective.
Montreal’s Market: A Steady Climb in 2025
Montreal’s real estate market continues to stand apart from other major Canadian cities, maintaining steady price growth despite economic uncertainties. While affordability is becoming a concern for some buyers, the city’s lower price points compared to Toronto and Vancouver keep demand strong.
For buyers, sellers, and investors, Montreal remains a market of opportunity, offering long-term stability and resilience. As 2025 unfolds, the city’s housing sector is expected to remain on an upward trajectory, making it an important market to watch in Canada’s evolving real estate landscape.
