M
arket Momentum Shifts in Montreal

    A surge in residential sales has propelled the Montreal real estate market into a new era of growth, with January transactions reaching 2,812 - a staggering 36% increase from the same period last year. This uptick in activity is not limited to any particular segment, as all property categories have seen a significant boost, particularly single-family homes on the Island of Montreal, which experienced a remarkable 55% surge.

    The rapid drop in active listings has created a seller's market, with numbers plummeting by 4% - a typical trend for this time of year. However, the current inventory levels remain well below historical averages, indicating a persistent imbalance that favors sellers, especially in areas bordering the Island of Montreal, where less than four months' worth of supply is available.

    This market dynamic has led to sustained price growth, with single-family homes experiencing an 11% increase. The Quebec Professional Association of Real Estate Brokers (QPAREB) attributes this phenomenon to a combination of factors, including interest rate cuts and new homeownership measures implemented prior to the holidays. These developments have enabled nearly 20% of latent demand since June 2024 to qualify for mortgages, leading to a surge in transactions.

    While economic uncertainty has tempered consumer confidence, QPAREB Market Analysis Director Charles Brant remains optimistic about future market trends. "Further rate cuts could be on the horizon, driven by Canada's economic support measures and developments in trade relations with the United States," he notes. For now, this predictability is a welcome respite for both buyers and sellers, as they navigate the complexities of the Montreal real estate market.