Montreal Housing Market Report
- The average home sold price reached $565,786 in April 2023, for a 7% annual decrease.
- While Montreal home sales are down 27% year-over-year, active listings are up by 61% year-over-year.
- Single-family detached median price decreased by 6.9% year-over-year to $540k.
- Condo median price decreased by 4.9% year-over-year to $390k.
- Plex median price decreased by 7.7% year-over-year to $720k.
Montreal Housing Market Overview
After increasing for several months, mortgage rates have stabilized, and Montreal’s housing market has reacted positively. Like other real estate markets in Canada, Montreal’s real estate activity in April remained dull compared to last year, while the average house price is also lower. However, home prices continued the upward trend that began in February this year.
April’s average home sold price of $565,786 is a 7% decrease year-over-year from the peak observed in April 2022 and a 2.7% increase month-over-month. The average price has increased by 5.5% over the past two years.
Sales and Inventory
3,755 homes changed owners in Montreal's housing market during the month of April 2023. This indicates a 27% drop in sales from the 5,124 sales in April last year and a 4.9% decrease compared to last month.
There were 16,456 active listings at the end of April 2023, an increase of 61% year-over-year. On the other hand, the 5,464 new listings represented an 11% year-over-year decrease. This month, Montreal's sales-to-new listings ratio is 68.7%. A sales-to-new listings ratio (SLNR) of 40% - 60% indicates balanced market conditions, while an SLNR above 60% indicates the market favoring the sellers.
Regional Analysis
The Island of Montreal had an average sold price of $647,675 and a total of 1,360 sales in April 2023. There were 325 houses sold in Laval in April 2023, with the average sold price being $538,185. North Shore of Montreal saw 878 homes change hands, with the average sold price in the region being $504,754. On the other hand, the 906 houses sold in South Shore of Montreal had an average sold price of $527,535.
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 $540,000 in April 2023, down 6.9% year-over-year and up 0.9% month-over-month.
- There were 22% fewer single-family homes sold this April than last year, with 1,974 single-family home sales in April 2023. This is a decrease of 5.2% compared to the previous month. Single-family homes had an average selling time of 50 days in April 2023, doubling from the 25 days last April.
- The median price for condominiums decreased by 4.9% year-over-year to a median price of $390,000 for April 2023, a 2.2% increase compared to last month.
- The 1,448 condominium sales in April 2023 represent a 30% drop in sales year-over-year and a 7.1% month-over-month decrease. Condos had an average selling time of 54 days, up from 32 days last April.
- The median price for plexes for April 2023 was $720,000, down 7.7% year-over-year and up 1.3% month-over-month.
- Meanwhile, sales of plexes are down 37% year-over-year and up by 9.6% month-over-month to 331 sales. Plexes had an average selling time of 72 days, up from 44 days last April.
Comparison and Reasoning
Comparing the recent price changes in Montreal with other major cities, Montreal’s year-over-year home price drop of 7% was slightly higher than the 3.4% drop in the Vancouver housing market and similar to the 8% fall in the Toronto housing market. Looking at the sales, home sales are down by 6% and 15% for Toronto and Vancouver, respectively. At 27%, Montreal’s dip in sales was higher, indicating a slower recovery.
Despite being one of the largest housing markets in Canada, the Montreal housing market has remained more affordable than Toronto's and Vancouver's housing markets. 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 receded over the past year following the Bank of Canada’s rate hikes in addition to its quantitative tightening (QT) measure to curb the high inflation rate. However, increased Montreal mortgage rates and Quebec City mortgage rates have compounded unaffordability, limiting demand from Quebec home buyers throughout the second half of 2022. With house prices trending upwards again and the interest rates stabilizing, many homebuyers may consider 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 April 2023
Average Sold Price and MLS HPI Benchmark Price
Total Transactions
Property Type Distribution
Market Overview for Single-Family Homes in April 2023
Median Sold Price
Transactions
Market Overview for Condominiums in April 2023
Median Sold Price
Transactions
Market Overview for Plexes in April 2023
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.