DETAILED REAL ESTATE MARKET ANALYSIS: VILLE MONT-ROYAL

1. ANALYTICAL OVERVIEW OF THE LAST QUARTER (Q4 2025)The market is coming out of a period described as “average” and emotionally neutral, marked by very strong segmentation across different price tiers.

Market segmentation:$1M to $1.75M segment: This is the current engine of the market. The absorption rate is exceptional (around 30%), with more transactions than available properties in certain price brackets.The “Soft Middle” ($1.75M–$2.25M): This is the heaviest segment. There are roughly 20 properties in inventory for only 2 transactions over the past three months.Luxury Market (>$2.5M): This segment experienced a sharp slowdown (only one notable transaction on Caledonia Street). However, an unexpected surge in showings was observed during the last two weeks of December, suggesting that high-end buyers may be returning soon.

1. STATISTICS AND INVENTORY DYNAMICSThe analysis of the numbers shows a significant shift in inventory toward a seller-favorable environment as 2026 begins.

The psychological factor: During the inventory increase, buyers were patient and demanding (the opposite mindset of the pandemic era). The current drop to 81 properties is starting to disrupt that patience and gives sellers more negotiating leverage.

1. REBOUND DRIVERS FOR 2026A. The REM Effect: An Economic “Game Changer”The REM restores VMR’s original identity: a community built around fast urban transit.

Time savings: Downtown in 8 minutes, Quartier DIX30 in 25 minutes.Added value: According to CAA, owning a car costs $1,300/month. Eliminating one vehicle thanks to the REM is equivalent to an additional mortgage borrowing capacity of $300,000.Education: Direct and frequent access to both major universities (McGill and Université de Montréal).

B. Stabilization in the Healthcare SectorUncertainty related to physician salary negotiations (family doctors and specialists) put many purchase plans on hold. Resolving these conflicts should unlock significant demand, as VMR is a preferred area for this clientele.

C. Comparative AttractivenessPrices in neighboring areas (Ahuntsic, Saint-Laurent) and the 450 (Laval) have risen so much that the gap with VMR is becoming minimal. For a smaller price difference, VMR offers larger lots and a stronger community lifestyle.

1. FORECASTS AND CAUTIONSThe outlook for Q1 2026 is positive (“pink crystal ball”), but remains cautious for the rest of the year.

Price growth: An increase of 5% to 6% is expected (based on Royal LePage forecasts).Political risks:Quebec: The approach of the fall 2026 election could recreate stress or a linguistic divide affecting buyer confidence.United States: Trade tensions (Trump tariffs) and the midterm elections remain sources of economic uncertainty.

1. MARKETING STRATEGYFor 2026, the approach will not only be to sell an individual property, but to sell the “Ville Mont-Royal Brand”:

Promote the new advantages aggressively (REM, sports center).Target buyers from outside the area.Use declining inventory to push hesitant buyers to act.

Recommendation to sellers: Every offer received in Q1 2026 should be taken seriously. Although the trend is upward, the political uncertainties later in 2026 suggest avoiding excessive long-term speculation.

Report prepared for Ville Mont-Royal homeowners and partners – December 23, 2025.