Montreal Housing Market Report
- The average home sold price reached $614,972 in June 2024, for a 5.4% annual increase.
- The benchmark price of a home in Montreal was $537,700, increasing by 0.6% from last month and 4.7% from last June.
- Montreal home sales were up 5.6% year over year to 3,830 in June 2024, and new listings were up 8% in the same time period.
- Single-family detached median price increased by 5.9% year-over-year to $583k.
- Condo median price increased by 2.8% year-over-year to $401k.
- Plex median price increased by 7% year-over-year to $777k.
- July 27, 2024 Update: Today’s Lowest mortgage rates in Montreal is 4.49% for 5-Year Fixed
Montreal Housing Market Overview
Montreal’s housing market is significantly more affordable than other major Canadian cities like Toronto and Vancouver. Due to this affordability, Montreal’s housing market seems to be garnering buyers' interest, which drove the average home price in the city to its all-time high in June 2024. Another factor leading to the price rise is plexes constituting a greater portion of the sales compared to last year. Plexes are the most expensive type of property sold in Montreal and an increase in their proportion in the total sales has pushed the average price up. The previous peak was observed two years ago, in April 2022. Meanwhile, both home sales and new listings are also trending upward compared to last year, hinting at an overall increase in market activity.
Home Prices
June 2024’s average home sold price reached its all-time high of $614,972 in Montreal’s housing market. It is a notable 5.4% growth over the average price of last June and an increase of 1.2% from the previous month. The average home price is now 1.1% higher than the peak of April 2022, even though the mortgage rates are significantly higher now. Meanwhile, it is noteworthy that the price of a home in Montreal is now about 52% higher than the average price five years ago.
Sales and Inventory
3,830 homes were sold in Montreal's housing market during the month of June 2024, reflecting a 5.6% growth in sales compared to June last year and a 16.1% decrease compared to last month.
There were 18,620 active listings at the end of June 2024, an increase of 24% year-over-year and a 2% decrease from last month. There were 5,446 new listings on Montreal’s housing market in June 2024, marking a year-over-year rise of 8%.
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 ratio was 70%, increasing from 65% last month. An SLNR of over 60% generally means that the market is more favourable for sellers.
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 $582,500 in June 2024, increasing 1.2% from the previous month and 5.9% year-over-year.
- The median price for condominiums increased by 2.8% year-over-year to a median price of $401,000 for June 2024. This is a 2.2% decrease compared to last month.
- The median price for plexes for June 2024 was $777,000, up 7% year-over-year and down 0.4% month-over-month.
Comparison with Other Cities
The average home prices in Montreal increased by 5.4% year-over-year, while Vancouver's housing market and Calgary's housing market saw average prices increase by 6.2% and 12.9%, respectively. Meanwhile, Toronto’s housing market witnessed a 1.7% decline in the average home price.
On the other hand, the transactions in Montreal grew by 5.6% year-over-year. However, transactions in Toronto, Vancouver and Calgary dropped by 16.9%, 19.1% and 13% 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 June 2024, and Calgary and Montreal were both seller’s markets.
Reasoning
Montreal’s housing market activity has been influenced by mortgage rates as well as the influx of migrants since the end of the pandemic. The Bank of Canada’s (BoC’s) rate hikes led to a significant increase in Montreal mortgage rates and Quebec City mortgage rates in 2022 and 2023, making borrowing much costlier than in 2020 - 2021. This resulted in a drop in demand for housing in Montreal in the past year.
However, the BoC announced a rate cut of 0.25% in June 2024, and the 2024 interest rate forecast suggests more rate cuts this year. Meanwhile, Montreal has a more affordable housing market than Toronto and Vancouver despite being Canada’s second-largest city by population. The expectations surrounding the rate cuts and relative affordability have recently magnified sales activity in Montreal’s housing market.
The market expectations continue to change almost every week, confusing many homebuyers, which is why some hesitate to withdraw from their TFSA or RRSP to buy a home in Montreal.
Home Prices in Montreal
Montreal Housing Market Statistics for All Property Types in June 2024
Average Sold Price and MLS HPI Benchmark Price
Total Transactions
Property Type Distribution
Market Overview for Single-Family Homes in June 2024
Median Sold Price
Transactions
Market Overview for Condominiums in June 2024
Median Sold Price
Transactions
Market Overview for Plexes in June 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.