Montreal Leads Canadian Home Price Growth

Montreal’s housing market is losing some heat, but it’s still ahead of the curve.

The median home price in Greater Montreal rose 3.5 percent year-over-year to $620,100 in the second quarter, the Montreal Gazette reported, citing real estate company Royal LePage. While prices fell 0.8 percent from the first quarter, Montreal outperformed Toronto and Vancouver, where year-over-year values dropped 3 and 2.6 percent, respectively, over the same 12-month period.

Detached homes in Montreal rose 5.7 percent year-over-year to $719,900 while condos were up 3.1 percent despite a quarterly decline of 2.1 percent. The numbers suggest that, while market momentum is softening, the city remains one of the more stable housing markets in the country.

“The Quebec market is behaving very differently from British Columbia and Ontario,” Royal LePage’s Dominic St-Pierre said. “It’s asserting itself as a key player in the national real estate dynamic.”

Across Quebec, the median home price rose 5.4 percent year-over-year, buoyed by a 7 percent jump in detached homes and a 3.6 percent rise in condos. Home prices nationally rose only 0.3 percent over the same period.

Montreal broker Marc Lefrançois told the outlet the market appears to be entering a more balanced phase. He’s observed a slowdown over the past month, but luxury inventory is at its highest since 2016.

First-time buyers remain active despite the persistent issue of affordability. The city’s housing supply continues to lag behind population growth, adding pressure despite softening demand.

Royal LePage projects that home prices in Montreal will rise 6.5 percent by year’s end, reaching a median of $653,165. That forecast reflects cautious optimism as the Bank of Canada begins cutting rates, though the impact of that monetary easing has yet to fully materialize in consumer behavior.

Montreal’s price trajectory comes as the province’s capital, Quebec City, leads with a staggering 13.5 percent year-over-year increase in home values, the highest among Canadian metros.

— Judah Duke