Montréal 2025 real estate market forecasts

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Montréal 2025 real estate market forecasts

Key information:
1. Overview of 2024: The year 2024 was marked by strong activity on the Montreal real estate market, with a 10-12% increase in sales, despite limited supply.

2. Forecasts for 2025: Sales will continue to grow, supported by lower mortgage rates (between 3.5% and 4%) which will stimulate demand. However, the inventory of properties will remain limited, leading to price increases of 3 to 5% and increased competition between buyers.

3. Tip for buyers: To maximize your chances, act quickly to secure a property before prices rise further. Take advantage of lower rates to increase your borrowing capacity and remain flexible in your offers.

4. Tip for sellers: Setting a realistic and competitive price, based on comparables over the last few months, is essential to attract serious buyers quickly. A good negotiation strategy will optimize your sale in a competitive market.

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With 2025 fast approaching, the question on everyone’s mind is: “What will the real estate market look like next year?”.

In Montreal, as elsewhere, real estate continues to evolve in an environment marked by economic fluctuations, monetary policies and demand driven by the city’s attractiveness.

After a year of rising sales in 2024 and, to a lesser extent, rising prices, 2025 promises to bring its share of opportunities and challenges for buyers and sellers alike.

In this article, we take a look at the main trends to expect in the Montreal real estate market in 2025. From the expected drop in mortgage rates to the evolution of property prices, find out how to anticipate market trends and optimize your real estate decisions, whether you’re looking for a new home or ready to sell.

Time needed: 5 minutes

  1. Montréal 2024 real estate market: Analysis and trends

  2. Montréal real estate market 2025: Outlook and forecasts

Watch Kyle’s full video analysis

Montréal 2024 real estate market: Analysis and trends


The year 2024 was marked by strong activity on the Montreal real estate market, with sales up between 10% and 12% depending on the neighborhood. Whether you live in the heart of the city or on the outskirts, this upward trend was visible across most sectors. What were the key factors behind this dynamism?

Resilient demand despite economic and political uncertainties


Montreal buyers were not deterred by economic uncertainties and still relatively high interest rates in the first part of the year.


In search of asset stability, they maintained sustained demand throughout the year. This pressure has led to an increase in sales, but also in prices in certain sectors, particularly those offering well-located properties or with strong potential for value enhancement.

While uncertainty was the order of the day in the first half of the year, the easing of mortgage rules and lower interest rates played a major role in boosting confidence among buyers, who saw their interest intensify as the year progressed.

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Limited supply fuels competition


In parallel with this demand, buyers may have been penalized by limited supply.

Despite the government’s efforts, the development of new buildings and the reduced number of properties available for sale have pushed up the value of existing properties, steering the market towards a balance of power in favor of sellers in the year 2024, a trend that should continue in 2025 as the new mortgage reforms take effect.

Issues and factors to watch out for at the end of the year

As 2024 draws to a close, several key factors will continue to influence the Montreal real estate market. These issues could play a decisive role for buyers, sellers and investors, and are worth keeping a close eye on:

Mortgage changes

One of the critical issues for the real estate market at the end of the year will be the evolution of mortgage regulations.

Following the announcement of lower rates, which could continue into 2025, financial institutions should adjust their service offerings to facilitate the borrowing capacity of buyers, particularly first-time buyers, in order to meet market conditions. These new mortgage rules, if they continue and intensify, will have a direct impact on demand and market competitiveness.

Inflation and interest rates

Inflation and interest rates remain crucial variables.

Although the outlook is tending towards stabilization, economic uncertainty about inflation could keep pressure on mortgage rates. A rise in inflation would inevitably lead to tighter lending conditions, which would dampen buyer confidence.

The link between inflation and central bank decisions will be closely monitored to forecast market trends.

Limited inventory

Property inventory will remain a decisive factor in the months ahead.

The limited number of new constructions and homes on the market will continue to exert pressure on prices. This scarcity of supply will foster a competitive environment, where buyers will have to be quick to secure a property.

However, if inventory were to increase, this could rebalance the relationship between supply and demand.

Geopolitics and the American economy

Geopolitical relations, particularly with the United States, will continue to be a factor influencing the Canadian economy, and by extension, the real estate market.

U.S. economic decisions, whether on interest rates, economic reforms or future presidential elections, will have a direct impact on the Canadian dollar, access to credit and investment.

An economic slowdown in the U.S. could also create a period of uncertainty as we approach 2025, prompting buyers to delay their real estate projects.

Kyle blog

“Barring a major black swan in the market, I anticipate a growing market in 2025. Mortgage adjustments and interest rates will play a key role, but demand and competitiveness will remain strong in Montreal.”

Kyle Shapcott, leader in real estate

Montreal real estate market 2025: Outlook and forecasts

As we approach 2025, a number of trends observed in 2024 are set to continue and even intensify. What are the prospects for 2025, and how can you prepare as a buyer or seller?

Montreal real estate market forecasts for 2025

Stability and competitiveness

The real estate market in 2025 is tending towards a certain stability and competitiveness. Growth in sales and median prices is anticipated, along with shorter time-to-market, due to the current buying power.

Continued high demand, coupled with lower mortgage rates, will stimulate the market. However, housing supply is likely to remain limited, at least in the first quarter, creating continued upward pressure on prices.

For buyers and sellers alike, it will be crucial to act quickly and strategically.

Market evolution

Montreal’s central districts and the metropolis as a whole will continue to be in high demand, while the suburbs will also see strong activity thanks to improved affordability.

Given current conditions, we can easily anticipate continued sales growth in 2025, which should be similar to that of 2024 (10 to 12%). As access to mortgages becomes more flexible for buyers with rates between 3.5 and 4%, we can expect sales prices to rise by 3 to 5% on the market, driven by buyer-friendly financing conditions.

Buyers will need to be ready to react quickly, while sellers will need to remain realistic about their expectations.

Tips for buyers on the Montreal real estate market in 2025

As noted above, the market should continue to grow in 2025, supported by dynamic demand.

Even if lower mortgage rates are expected, the supply of housing will remain limited, increasing competition between buyers.

For buyers, forecasts for 2025 include :

  • Rising sales: The real estate market should continue to grow, with an increase in sales comparable to that of 2024, fluctuating between 10 and 12% depending on the sector.
  • A market supported by falling rates: By the end of 2024 and into 2025, mortgage rates should stabilize at between 3.5% and 4%, increasing demand and making home ownership more attractive to buyers, particularly first-time buyers.
  • Confidence in the market: Market conditions and vitality have already boosted buyer confidence, and this is set to continue in 2025. Real estate remains a profitable, lower-risk source of investment compared with other assets.
  • Limited inventory: Housing supply will remain under pressure in 2025. The number of available properties will struggle to keep up with growing demand. This imbalance between supply and demand will create a highly competitive environment where buyers will have to act quickly to secure their acquisition.
  • Price rises expected: Market conditions should naturally push prices up, by 3 to 5% depending on the sector. Properties will continue to appreciate in value, and for buyers, waiting could mean higher prices in the future. So it’s wise to act now to take advantage of lower mortgage rates and avoid an even more significant rise in prices.
House price trends in Canada – Statistics Canada

Tips for sellers on the Montreal real estate market in 2025


Before you start selling your property in 2025, it’s essential to adopt a well-thought-out strategy based on current market trends. Here are a few key tips to optimize your chances of selling quickly and at the best price:

  • Pricing realism and sales strategy, finding the right balance: It’s crucial for sellers to stay in touch with market realities in 2025. To attract serious buyers and maximize your chances of selling quickly, it’s imperative to set a competitive price, based on recent comparables (sales made in the last 3 to 6 months) in the neighborhood. We recommend staying within 2-3% of local market prices.

    Too high a price may deter buyers, while too low a price may undervalue your property. Finding this balance will optimize the profitability of the sale while remaining attractive.
  • Negotiation, an opportunity to manage well: Even in a competitive market with strong demand, negotiation remains an important step for sellers. The limited supply in 2025 will work in favor of sellers, who will be able to keep an advantageous negotiating margin.
    Make sure you have a good knowledge of the market and work with a broker who faithfully represents your interests at this stage.

In 2025, success for sellers is based on a strategic approach to pricing and reactivity to market opportunities.

Conclusion

In conclusion, 2025 looks promising for the Montreal real estate market, with rising sales, more affordable mortgage rates and sustained demand. Whether you’re buying or selling, it’s essential to understand market trends in order to make informed decisions.

For buyers, improved affordability with lower rates and a competitive market demands responsiveness, while sellers will need to remain realistic about prices while benefiting from favorable negotiation margins. With a well-thought-out strategy and expert support, you can make the most of the opportunities offered by 2025.

To anticipate these trends and support you in your real estate projects, our team of real estate brokers in Montreal is at your disposal.

Contact us for an assessment, personalized advice or simply to discuss your needs. Don’t let opportunities slip through your fingers, get ready now to take advantage of the real estate market in 2025!

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    Kyle Shapcott

    kyle@equipels.com

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    Kyle has been an expert in the real estate market for over 10 years. Passionate about Montreal and its real estate sector, he regularly shares his analysis and advice in his articles.

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