Montreal’s residential real estate market powered through October, notching a 5% year-over-year sales increase and marking the city’s fourth-best October since 2000, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).
The market’s momentum came despite a notable dip in condominium sales, underscoring the resilience of other property segments. Single-family homes and plexes led the charge, with sales up 8% and 20%, respectively.
“October saw a continuation of the strong sales observed in the third quarter for the Montreal area. Despite an increase in inventory driven by condominiums, the market remains tight, with sales up 5 per cent,” said Charles Brant, QPAREB’s market analysis director.
“Taking into account the first ten months of 2025, the Montreal area is on track to close the year with its strongest sales performance in 25 years,” Brant said.
Condo market faces headwinds
Condominium sales fell by 4%, confirming a slowdown that has persisted through much of 2025. The segment’s challenges are being compounded by a sharp rise in condo fees—up 50% over the past five years in Montreal, according to QPAREB.
“These fees, which are factored into the debt service ratio when qualifying for a mortgage, have limited access to homeownership for many buyers, to the benefit of plexes, which are often seen as an alternative option,” said Camille Laberge, QPAREB assistant director and senior economist.
Laberge flagged that the supply of condominiums has been growing steadily since 2022, reaching a surplus of 1,000 units in October compared to the Montreal CMA’s 10-year historical average.
“In a market that is less tight, where negotiation has regained importance, it is now possible to find attractive buying opportunities with the strategic support of a specialized real estate broker,” Laberge said.
Inventory and pricing trends
Active listings climbed 7% year-over-year, driven exclusively by condominiums, while single-family homes and plexes remained scarce.
Despite the rise in supply, the market stayed in sellers’ territory, with median prices continuing to climb: single-family homes reached $632,000 (up 7%), plexes hit $850,000 (up 8%), and condos rose to $429,000 (up 4%).
The average time to sell dropped across all property types, with single-family homes moving in just 38 days.
Rate cuts and investor activity
The recent policy interest rate cuts since September have revived buyer demand and investor activity, QPAREB noted. The Bank of Canada lowered its policy rate to 2.5% in September and 2.25% at the end of October.
“This is reflected in renewed household confidence in the market and active investor participation. As a result, prices continue to rise, and selling times are dropping rapidly, particularly for single-family homes and, even more so, for small income properties,” Brant said.
The latest BoC cut marks good news for Canada's housing market, according to TD Bank assistant vice president, real estate secured lending Crystal Leigh.
“If I think about what that actually means for Canadians, it comes as a relief as many Canadians have been waiting to make that important purchase decision. So think about lowering the cost of borrowing for Canadians. It really provides an opportunity for Canadians to feel more optimistic. And those sitting on the sidelines may enter the market as they benefit from this reduction,” she told Canadian Mortgage Professional.
Meanwhile, the federal government’s latest budget may prove too restrained to lift Canada’s slowing economy, potentially leaving BoC with little choice but to reduce interest rates again, according to economists.
CMP
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