Montreal’s real estate market has seen a notable decline in home sales for January, with figures dropping 15 per cent compared to the same period last year. This stagnation, attributed to limited supply and reduced purchasing power for many potential buyers, has not stopped property prices from continuing their upward trajectory.
Sales Figures and Market Trends
According to the Quebec Professional Association of Real Estate Brokers, a total of 2,364 properties were sold in the Montreal census metropolitan area in January, down from 2,774 during the same month in 2022. This decline highlights the challenges faced by the market as it grapples with a persistent shortage of available homes.
Charles Brant, the association’s director of market analysis, noted that while sales activity has slowed, the limited inventory is pushing prices higher, particularly for multiplexes—properties with two to five units. These types of homes have seen a significant price increase, underscoring the demand for multi-family housing options in the area.
Rising Home Prices
Despite the downturn in sales, January has seen a rise in median home prices across all categories. Multiplexes experienced the most considerable increase, with their median price jumping 8 per cent to reach $841,800. This surge in prices reflects the ongoing demand in a tight market, where buyers are competing for a limited number of properties.
Single-family homes also saw a price increase, rising 4 per cent year-over-year to a median of $615,000. Meanwhile, condominiums recorded a 2 per cent uptick, bringing their median price to $428,000. These figures indicate that even as sales drop, the value of homes continues to climb in the competitive Montreal real estate landscape.
New Listings and Market Dynamics
The Montreal real estate board reported an increase in new listings, with 6,550 properties hitting the market in January—an 8 per cent rise compared to the same month last year. This uptick in new listings could offer some relief to buyers, but the reality remains that the market is still constrained by a lack of available properties.
The persistent supply issues, coupled with fluctuating economic conditions, are creating a complex environment for both buyers and sellers. While the increase in listings may suggest a potential easing of the tight market, the overall shortage still poses significant challenges.
Why it Matters
The current state of Montreal’s housing market encapsulates a broader trend seen across many urban centres in North America, where affordability and access to housing remain critical issues. As prices continue to rise, the gap between what homes cost and what buyers can afford widens, potentially leading to long-term implications for the city’s demographic landscape. Addressing these challenges will be vital for ensuring that Montreal remains an accessible and vibrant place to live.
