Montreal’s real estate market has started 2025 strong, completing a two-year recovery. January saw both sales and prices rise, reinforcing the city’s status as one of Canada’s top housing markets.

Sales Return to Pre-Pandemic Levels

Resale transactions have surpassed 54,000, bringing activity back to pre-pandemic levels. The Quebec Professional Association of Real Estate Brokers (QPAREB) reported 2,812 residential sales in January 2025, a 36% increase from the previous year. Single-family homes on the Island of Montreal saw a notable 55% rise in sales.

Tight Inventory Gives Sellers the Advantage

As more buyers return, the number of listings remains low. Despite a seasonal 11% rise in new listings, inventory is down by 4%, keeping sellers in control of price negotiations. Areas surrounding the Island of Montreal are particularly tight, with less than four months of inventory available.

Prices and Demand Keep Rising

Home prices continue to climb. In January, the median price of single-family homes rose more than 10% year-over-year, while condos increased by nearly 8%. This upward trend is expected to continue through 2025, possibly accelerating.

Interest Rates and Market Sentiment

The market rebound is supported by recent interest rate cuts and new homeownership initiatives. Many buyers who had been waiting are now re-entering the market. While some economic uncertainty has affected consumer confidence, trade developments with the U.S. could lead to further rate cuts, boosting buyer support.