2024 Greater Montreal Highlights 

1. The aggregate price of a home in the region rose 8.2% year over year in the fourth quarter of 2024 to $613,300.  
2. Sales Volume Rose by 7% 
   
3. First-time buyers rushed back into the market, while investors and move-up buyers returned to the market at the end of the year. 
4. New mortgage rules were implemented to alleviate some of the barriers to home ownership, including extending the amortization period to 30 years for all new construction purchases and all first-time buyers, as well as a relaxation of the mortgage stress test rules for those considering switching lenders upon renewal. The government also changed to rules to allow buyers to put less than 20% down on homes priced up to $1,499,999. 
   

2024 West Island Single Family Highlights

The West Island market remained strong in 2024, supported by healthy buyer demand and continued low inventory in the under $1,500,000 price ranges:

1. Single Family Home Prices Increased 4% Year-over-Year: A late surge in Q4 drove much of this growth, particularly in homes under $1.5M. This significant increase compared to 2023 reflects renewed market confidence.
2. Sales Volume in the single family market rose by 21% year over year: We saw many more homes sold compared to 2023 driven by strong demand in the West Island for homes priced under $1.5M. 
3. Homes Took Longer to Sell: The average days on market rose to 57 up from 53 in 2023, indicating buyers were more deliberate in their decision-making.

“Q4 results are primarily due to last October's 50-basis-point cut to the Bank of Canada's key lending rate," said Dominic St-Pierre, Executive VP of Business Development, Royal LePage. "A second 50-basis-point cut in the policy rate was announced in December releasing another wave of demand.”

Falling interest rates and renewed buyer confidence created seller market conditions in lower and mid-range price segments. Q4 was particularly active with the return of multiple offers on lower priced (under $1M) homes ,while higher price properties saw inventory rise and prices stabilize. 

2025 Forecast

The Greater Montreal Area is expected to outpace other major Canadian markets in 2025, with aggregate home prices projected to rise 6.5% year-over-year to $655,082. The median price of a single-family home is forecast* to increase 7.5% to $750,780, while condominiums are expected to rise 6.0% to $507,210.

Despite current economic and geopolitical tensions, there are a number of positive factors to look out for, which should bolster the province's and the country's real estate market performance in the months ahead.

The West Island remains one of the most desirable markets in the Greater Montreal Area, offering excellent schools, community amenities, and family-oriented lifestyles. As 2025 unfolds, demand is expected to remain strong, fueled by improved borrowing conditions and strong demand for suburban living both in the single family and condo segments of the market. Further rate cuts should inject some increased buyer activity in the luxury segment of the market. We expect a very busy and early spring market. 

Advice for Buyers and Sellers

For Buyers

Timing will be key. With interest rates dropping and prices forecast to rise, acting early in 2025 may help you secure better deals. Entry level buyers will encounter strong competition and will need to be prepared to act quickly. Luxury market buyers may be able to secure some good deals earlier in the year as inventory levels remain slightly higher as we enter Q1.

For Sellers

Montreal's family-friendly neighbourhoods in the West Island make it a highly desirable location. Homes that are move-in ready or upgraded to meet today's buyer expectations will perform particularly well. Listing in the first half of the year could help you maximize your return for entry level and mid-range priced homes. Luxury home sellers will need to pay particular attention to their local market dynamics and employ a competitive, realistic and data-driven pricing strategy to attract interest. 

While broader market stats can be helpful in identifying current trends, it's important to remember that many micro markets (specific neighbourhoods, price ranges etc) exist across Montreal and all of them have very unique features that should be carefully studied before making any decisions in 2025. 

Whether you're looking to buy, sell, or simply learn more about the market, we are here to guide you every step of the way. Let's connect and make 2025 your best year yet!

Contact us today to discuss your real estate goals or gain further insights into the West Island and Greater Montreal markets.

*source Royal Lepage Canada