Montreal’s real estate market kicked off 2025 with a bang, marking the completion of a two-year recovery. With January sales and prices climbing at a steady pace, the city is once again one of Canada’s hottest housing markets.
Sales rebound to pre-pandemic levels
RBC economist Robert Hogue writes in his monthly housing report, “Another strong advance in January effectively sealed the deal on a two-year-long market recovery in Montreal.” By his count, seasonally adjusted and annualized resale transactions surpassed 54,000, bringing activity back to pre-pandemic levels—when the city was already booming.
The Quebec Professional Association of Real Estate Brokers (QPAREB) confirmed this trend, reporting 2,812 residential sales in January 2025—a 36 per cent jump from the same period last year. This surge was seen across all property types, with single-family homes on the Island of Montreal leading the charge with a 55 per cent increase in transactions.
Tight inventory keeps sellers in control
With more buyers returning to the market, active listings continue to dwindle. Although new listings increased by a seasonally adjusted 11 per cent from December, inventory remains low. In fact, QPAREB noted a 4 percent drop in active listings, not uncommon at the start of the year.
Hogue emphasizes, “This did little to boost inventory, which has shrunk slightly since mid-2024. Montreal remains among the tighter markets in the country, with sellers holding a strong hand in price negotiations.”
Sectors bordering the Island of Montreal are particularly tight, with less than four months of inventory available.
Prices and demand continue to rise
Montreal’s home prices continue their vertical trajectory. The median price for single-family homes rose by over 10 per cent year-over-year in January, while condo apartments saw an increase of nearly 8 per cent. According to QPAREB, single-family homes led the way with an 11 per cent annual increase in value.
Hogue expects the momentum to continue, noting, “We expect broad-based price appreciation to continue over the remainder of 2025—possibly accelerating faster.”
Interest rates and market confidence
The market’s resurgence has been fueled in part by interest rate cuts in October and December, as well as new homeownership measures introduced before the holidays, QPAREB says. Many previously sidelined buyers—nearly 20 per cent of latent demand since mid-2024—have now re-entered the market.
QPAREB Market Analysis Director Charles Brant acknowledged the impact of economic uncertainty but pointed out the ongoing support for buyers, “It is true that these uncertainties have already been reflected by a slight decline in the consumer confidence index in January… However, developments in trade relations with the United States could, as part of Canada’s economic support measures, lead to further rate cuts.”