Montreal Housing Market Report
- The average home sold price reached $614,020 in August 2024, for a 2.6% annual increase.
- Montreal home sales were up 8.6% year over year to 2,991 in August 2024, and new listings were up by 2% in the same time period.
- Single-family detached median price increased by 5.2% year-over-year to $590k.
- Condo median price increased by 3.6% year-over-year to $407k.
- Plex median price increased by 6% year-over-year to $763k.
- September 18, 2024 Update: Today’s Lowest mortgage rates in Montreal is 4.29% for 5-Year Fixed
Montreal Housing Market Overview
Montreal’s housing market continued to grow in August 2024, with both home prices and sales increasing compared to the past year. The average home price is almost at its all-time peak, while sales have returned to pre-pandemic normalcy. The median price for single-family homes, the most commonly sold type of property, was at its peak in August 2024. Montreal’s housing market’s relative affordability compared to other major cities in Canada has caused the sales activity to surge. Meanwhile, new listings are also trending upward compared to last year, hinting at an overall increase in market activity.
Home Prices
In August 2024, the average home sold price in Montreal’s housing market reached $614,020. This is 2.6% higher than the average price of last August and 0.4% higher than the previous month. The average home price is 0.9% higher than the peak of April 2022, even though mortgage rates are significantly higher now. Meanwhile, it is noteworthy that the price of a home in Montreal is now about 54% higher than the average price five years ago.
Sales and Inventory
2,991 homes were sold in Montreal's housing market during the month of August 2024, reflecting an 8.6% growth in sales compared to August last year and a 13% decrease compared to last month. The sales activity in Montreal is now comparable to pre-pandemic trends.
There were 17,200 active listings at the end of August 2024, an increase of 18% year-over-year and a 2% decrease from last month. There were 4,840 new listings on Montreal’s housing market in August 2024, marking a 2% year-over-year and a 0.2% month-over-month rise.
Montreal’s housing market was a seller’s market for the third month in a row based on the sales-to-new listings ratio (SLNR). This month, Montreal's sales-to-new listings was 62%, decreasing from 71% last month. An SLNR of over 60% generally means that the market is more favourable for sellers, and Montreal’s housing market has been in the seller’s market territory for the past six months now.
Property Types’ Performance
Looking at the median prices and sales of Montreal’s property types.
- The median price of a single-family home in Montreal was $590,000 in August 2024, increasing 0.9% from the previous month and 5.2% year-over-year.
- The median price for condominiums increased by 3.6% year-over-year to $407,100 in August 2024, a 0.9% decline from last month.
- The median price for plexes for August 2024 was $763,000, up 6% year-over-year and 1.1% month-over-month.
Comparison with Other Cities
The average home prices in Montreal increased by 2.6% year-over-year, while Calgary's housing market saw average prices increase by 16.6%. Meanwhile, Toronto’s housing market and Vancouver's housing market witnessed a 0.7% and 2.8% decline in the average home price in the same period.
On the other hand, the transactions n Montreal grew by 8.6% year over year. However, transactions in Toronto, Vancouver, and Calgary dropped by 6%, 17%, and 19.9% in the same time frame.
Meanwhile, based on the sales-to-new listings ratio, Toronto was a buyer’s market, Vancouver was in balanced market territory in August 2024, and Calgary and Montreal were both seller’s markets. This trend has continued for a few months now.
Reasoning
Montreal’s housing market activity has been influenced by mortgage rates and the influx of migrants since the end of the pandemic. The Bank of Canada (BoC) cut its policy rate twice in recent months, which led to a slight decline in the Montreal mortgage rates and Quebec City mortgage rates , making borrowing slightly cheaper than the past year. Meanwhile, the expectations surrounding future rate cuts and relative affordability compared to housing markets such as Toronto and Vancouver have magnified sales activity in Montreal’s housing market compared to last year. On the other hand, in 2023, the province of Quebec registered its highest-ever net migration gain, 217,600 people, which also contributes to the demand for housing in the province’s largest city. All these factors have pushed home prices in Montreal up recently, and the average home price has now crossed the 2022 peak.
Looking Forward
The 2024 interest rate forecast suggests that BoC will continue to cut its rates for the foreseeable future. As a result, mortgage rates will likely decline further by the end of this year. Meanwhile, Montreal has a more affordable housing market than Toronto and Vancouver despite being Canada’s second-largest city by population, thus attracting many buyers. A further decline in mortgage rates will likely attract more buyers, and we might see Montreal’s housing market heat up further in the coming months.
Those looking to purchase a home in Montreal may consider withdrawing from their TFSA or RRSP to make a downpayment for the new home.
Home Prices in Montreal
Montreal Housing Market Statistics for All Property Types in August 2024
Average Sold Price and MLS HPI Benchmark Price
Total Transactions
Property Type Distribution
Market Overview for Single-Family Homes in August 2024
Median Sold Price
Transactions
Market Overview for Condominiums in August 2024
Median Sold Price
Transactions
Market Overview for Plexes in August 2024
Median Sold Price
Transactions
Glossary and Definitions
MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.
MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.
Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. The insurance can cover:
- Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
- Liability for any property damage or bodily injury suffered on strata property
- Any fixtures that are part of the "standard unit" or original construction of each unit
Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.
Property types
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Property Classes
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
Leasehold: Leasehold describes the situation where different entities own the land and the structure built on the land. Owner of the buildings has leased the land and pay rent to their landlord while owning the building on the land.
Housing Markets Across Canada
Data sourced from the Quebec Professional Association of Real Estate Brokers (APCIQ) and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.
- The trademarks MLS®, Multiple Listing Service®, and associated logos are owned by CREA and identify services provided by its members.