Home Sales Surge in March 2025

March 2025 saw a 10% increase in home sales year-over-year, with a total of 4,975 homes sold. This growth was paired with a 16% increase in new listings. 

Despite the uptick in listings, the demand for homes in Montreal is still outpacing supply. This imbalance has pushed the market into seller’s market territory, where demand is high, and sellers have the upper hand.

Home Prices on the Rise

Home prices in Montreal continue to climb in March:

• Single-family homes: The median price reached a new all-time high of $610,000, an 8% increase compared to last year.
  
  

• Condominiums: The median price for condos rose by 5% to $420,000.
  
  

• Plexes: These properties saw the largest price increase, with a 10.7% jump, bringing the median price to $830,000.
  
  

The increase in plex prices is noteworthy, as it suggests growing interest in income-generating and multi-family properties, which offer rental potential for investors, and for owner occupants, the ability to offset one's mortgage costs by taking on a tenant or having aging parents or adult children live in the same building. 

Luxury Segment Heating Up

In the first quarter of 2025, the luxury segment of the Montreal real estate market has been thriving. 32 properties priced above $2.5 million sold this year representing a more than 100% increase from the 15 sales during the same period in 2024. Most of these high-end sales have occurred in sought-after areas closer to downtown like Westmount, Outremont, Town of Mont Royal, and Ville-Marie.

The West Island—especially areas like Beaconsfield, Baie D’Urfe, and Pointe-Claire—has also attracted luxury buyers seeking more space and land with 5 sales over $2.5M in Q1 of 2025 compared to just 1 sale for the same period last year.

Sales and Inventory: The Tight Market Continues

Sales are up, with 4,975 homes sold in March, reflecting a 21.7% increase from February. New listings came in at 7,851, marking a 16% increase from last year. However, active listings were 18,116 at month-end, a 6.7% increase from February.

Despite more listings, the supply is still not enough to meet demand in lower price ranges, with seller’s market conditions under $1.5M. 

Montreal vs. Other Canadian Cities

How does Montreal compare to other major markets in Canada?

• Calgary saw a 7.3% increase in home prices year-over-year.
  
  

• Toronto and Vancouver experienced price declines of 2.5% and 5.9%, respectively.
  
  

• Meanwhile, Montreal's transaction volume grew by 10%, while cities like Toronto (-23.6%) and Vancouver (-13.4%) saw significant declines in sales activity.
  
  

Montreal's market is clearly outperforming many other major cities, making it a desirable destination for buyers and investors.

Why is the Market So Hot?

Several factors are driving Montreal’s real estate growth. One of the main reasons is the decline in mortgage rates. The Bank of Canada has cut its policy rate by 2.25% over the past 10 months, which has made borrowing more affordable.

In addition to lower mortgage rates, Montreal’s housing market remains relatively affordable compared to Toronto and Vancouver, two of Canada’s most expensive cities. This affordability has attracted more buyers to Montreal, contributing to the increase in both sales and prices.

Additional Market Trends

Several key trends have emerged over the past year:

• Empty nesters and retirees are increasingly downsizing, opting for pied-à-terres or buying properties abroad.
  
  

• There has been a rise in demand for multi-family homes, with buyers seeking adjoining units for older children or parents.
  
  

• Condominium sales have been strong despite concerns about rising assessment costs, particularly as the provincial government’s Bill 16 now mandates reserve fund studies every five years to ensure condominiums can handle future repairs and replacements. Many seniors are looking to downsize to bigger, more high end condos while many first time buyers look to smaller, more affordable condos to get into the market amid higher housing costs. 
  
  

Looking Ahead: What’s Next for Montreal’s Real Estate Market?

The outlook for Montreal’s real estate market remains positive. Mortgage rates are expected to continue their downward trend, which could drive even more buyers into the market. However, economic uncertainty—such as recent trade tariffs—could have inflationary effects that impact affordability. This could lead to a slowdown or shift in the market in the months to come.

With a relatively affordable housing market and a strong economy, Montreal continues to be an attractive option for buyers, but it’s important to stay informed as the market evolves.

Population Growth and Future Outlook

Montreal’s population growth is also contributing to the market’s strength. From July 1, 2023, to July 1, 2024, the Montreal CMA added nearly 132,000 people, bringing the population to over 4.5 million. This influx of new residents, coupled with pent-up demand, is expected to drive home-buying activity from the bottom up, ideally positioning the luxury segment for future growth.

Real estate markets in Quebec show resilience in the midst of tariff dispute with the United States. Read Royal LePage's Q1 overview of the 5 main urban markets in Quebec. 

Conclusion: Is Now the Right Time to Buy or Sell?

Montreal’s real estate market is currently experiencing significant growth, with rising prices, increased sales, and strong demand. If you’re a seller, it’s a great time to list your property, as market conditions are favorable. For buyers, it’s essential to act quickly as competition remains high.

Whether you’re looking to buy, sell, or invest, now is a crucial time to stay informed about the local market. As always, if you have questions or need personalized advice, don’t hesitate to reach out.

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