City sees a steady rise in home sales fueled by recent interest rate cuts
Montreal’s real estate market is showing strength compared to other Canadian cities, as falling interest rates help drive a surge in home sales.
Residential sales in the Montreal Census Metropolitan Area (CMA) rose 9% month over month in August, according to the Quebec Professional Association of Real Estate Brokers (QPAREB).
This growth comes at a time when many other Canadian cities are struggling with rising debt levels and tighter household finances. However, the association noted that Montreal appears to be benefiting from a unique combination of lower home prices and a series of interest rate cuts that have improved affordability for buyers.
“The strength of the Montreal resale market contrasts with the decline posted by many other Canadian metropolises struggling with a much higher level of household debt, lower savings and diminishing purchasing power,” QPAREB market analysis director Charles Brant said in the report. “All these factors limit transactional activity and contribute to more instability for mortgage renewals.
“Montreal, unlike these markets, is benefiting and will benefit even more from the downward trend in interest rates. Buyers have more manoeuvring room since household income tends to be similar to that of other major Canadian cities, yet home prices remain almost half as high.”
Three consecutive rate cuts by the Bank of Canada since the start of summer have played a key role in boosting purchasing power for Montreal residents.
According to Brant, this shift gives Montreal a key advantage in the national market. “The impact of the drop in mortgage rates was mainly felt in the purchasing power of households,” he added.
All major areas in the Montreal CMA saw increases in sales activity. Laval recorded a significant 17% growth in home sales compared to last year, while Saint-Jean-sur-Richelieu and the North Shore posted gains of 16% and 12%, respectively. Sales on the Island of Montreal also rose by 8%, and Vaudreuil-Soulanges followed closely with a 9% increase.
Sales were strong across property types, with condominiums leading the way at an 11% increase in transactions, followed by a 9% rise in single-family home sales. Smaller income properties, like duplexes and triplexes, saw a more modest 4% boost.
As sales rise, so do property listings, with active listings increasing by 18% in August compared to the same period last year. This growth has been primarily driven by more single-family homes and condos hitting the market, although the inventory level remains below historical norms.
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Home prices have remained steady, showing only modest gains across property categories. The median price of a single-family home in Montreal increased by 5% year-over-year to $590,000, while condos saw a 4% bump to $407,100. Prices for small income properties rose by 6%, with the median price reaching $763,000.
Though prices are climbing, they remain relatively stable month-to-month, with only a slight 1% increase compared to July 2024.
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