Montreal Housing Market Report
- The average home sold price reached $535,190 in February 2023, for an 8.2% annual decrease.
- While Montreal home sales are down 31.9% year-over-year, active listings are up by a staggering 64% year-over-year.
- Single-family detached median price decreased by 6.4% year-over-year to $515k.
- Condo median price decreased by 3.8% year-over-year to $380k.
- Plex median price decreased by 7.2% year-over-year to $710k.
Montreal Housing Market Overview
January 2023 saw the slowest start to the year in a very long time, and despite the recovery from the seasonal slump, February’s real estate activity remained dull compared to a year ago. Like other real estate markets in Canada, the Montreal housing market also witnessed the average house prices plummet compared to last year, while the sales saw a ‘record decline.’ February’s average home sold price of $535,190 is an 8.2% decrease year-over-year and a 1.2% increase month-over-month.
2,996 homes changed owners in Montreal's housing market during the month of February 2023. This indicates a 31.9% drop in sales from the 4,399 sales in February last year and a 67% increase compared to last month. The increased mortgage rates have prompted many buyers to take a wait-and-see approach.
Comparing the recent price changes in Montreal with other cities, Montreal’s year-over-year home price drop of 8% was similar to the 9% drop in the Vancouver housing market but lower compared to the 18% fall in the Toronto housing market. Looking at the sales, home sales in both Toronto and Vancouver are down by 47% YOY for February 2023. At 32%, Montreal’s dip in sales remains relatively lower.
The Island of Montreal had an average sold price of $627,843 in February 2023, a decrease of 7.3% from February last year. The 1,015 sales, on the other hand, represent a 37% drop in sales compared to last year.
Looking at the median prices and sales of Montreal’s property types.
- The median price of a single-family home in Montreal was $515,000 in February 2023, down 6.4% year-over-year and up 3% month-over-month.
- There were 26.4% fewer single-family homes sold this February than last year, with 1,581 single-family home sales in February 2023. This is an increase of 76% compared to the previous month. Single-family homes had an average selling time of 58 days in February 2023, compared to 32 days last February.
- The median price for condominiums decreased by 3.8% year-over-year to a median price of $380,000 for February 2023, a 2.7% increase compared to last month.
- The 1,207 condo sales in February 2023 represent a 33.5% drop in sales year-over-year. Condos had an average selling time of 60 days, up by 19 days from 41 days last February.
- The median price for plexes for February 2023 was $710,000, down 7.2% year-over-year and up 5.2% month-over-month.
- Meanwhile, Montreal plex sales are down 53% year-over-year to 205 sales. Plexes had an average selling time of 82 days, 27 days more than 55 days last February.
There were 15,893 active listings at the end of February 2023, an increase of 64% year-over-year. The active listings are slightly above the pre-pandemic levels of three years ago. On the other hand, the 5,314 new listings represented an 8% year-over-year decrease. This month, Montreal's sales-to-new listings ratio is 56%. A sales-to-new listings ratio (SLNR) of 40% - 60% indicates balanced market conditions.
Despite being one of the largest housing markets in Canada, the Montreal housing market has remained more affordable than Toronto's housing market and Vancouver's housing market. The house prices in Montreal are slightly lower than Hamilton's housing market and Ottawa’s housing market, even though they are smaller housing markets compared to Montreal.
The house prices in Montreal’s housing market have receded over the past few months following the Bank of Canada’s rate hikes in addition to its quantitative tightening (QT) measure to curb the high inflation rate, and the prices are now down to what they were in April 2021. Increased Montreal mortgage rates and Quebec City mortgage rates have also compounded unaffordability, limiting demand from Quebec home buyers. Uncertainty around inflation and interest rates may cause homebuyers to give a second thought before withdrawing from their TFSA or RRSP to buy a home in Quebec.
Home Prices in Montreal
Montreal Housing Market Statistics for All Property Types in February 2023
Average Sold Price and MLS HPI Benchmark Price
Property Type Distribution
Market Overview for Single-Family Homes in February 2023
Median Sold Price
Market Overview for Condominiums in February 2023
Median Sold Price
Market Overview for Plexes in February 2023
Median Sold Price
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.
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.
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.