Montreal Real Estate Market Analysis: Outlook for Fall 2025

Greater Montreal’s real estate market continues to stand out in 2025, showing solid and positive performance so far. Unlike other major Canadian cities like Toronto and Vancouver, which have experienced sharp price declines over the past year, the Montreal region has held its ground. That said, a closer look reveals complex market dynamics and significant variations depending on segment and area.

Montreal: a more nuanced reality

Single-family homesPrices for single-family homes have reached a new peak, erasing the slight dip recorded in 2023. However, the inventory of available properties is rising sharply and is gradually approaching levels seen about seven years ago.

As of this writing, full August data is not yet available, but the number of transactions is already climbing—though at a slower pace than inventory. The absorption rate (sales ÷ active listings) has been edging downward in recent months.

Paradoxically, activity on the ground shows signs of strength, though this momentum has not yet fully appeared in the official statistics. The market remains seller-friendly, but careful pricing is crucial: buyers are quick to dismiss properties they consider overpriced.

CondosThe condominium segment is following a similar trajectory. Prices have reached record highs, but inventory is also increasing and is now approaching levels last seen in 2016. This trend could move the market toward balance, providing some relief for buyers. The absorption rate already shows signs of gradual weakening.

Luxury marketFor high-end properties, inventory on the Island of Montreal is also rising. The number of transactions remains relatively stable, but there is a noticeable uptick in buyer interest. This rebound may reflect a return to normal for a segment that had lost momentum since 2022.

Montreal’s outskirts: a different dynamic

The South Shore, Laval, and the North Shore tell a different story. In these areas, inventory has remained stable in recent years and even shows a slight decline lately. At the same time, the number of transactions is holding steady. The result: the advantage remains firmly on the side of sellers in Montreal’s peripheral markets.

And what about interest rates?

A potential drop in interest rates would undoubtedly boost the Canadian housing market, which sorely needs it. In Quebec, however, the effect would likely be different: rather than triggering a sharp price surge, a rate cut would mainly help the market absorb the current increase in inventory, while stabilizing and supporting the values already reached.