The median price of a condominium in Montreal rose 8% in January 2025 as total home sales spiked, according to a new report from the Quebec Professional Association of Real Estate Brokers (QPAREB).

Residential sales in the Greater Montreal Area climbed to 2,812 transactions in January, marking a 36% spike compared to January 2024. The surge in transactions brought activity 10% above the historical average for this time of year.

The 8% median condo price increase represented an 80-basis-point gain from the 7.2% growth recorded in 2024, reflecting the sustained strength of Montreal’s real estate market.

“Unsurprisingly, buyers continue to return to the market in large numbers, motivated by a combination of the significant interest-rate cuts announced in October and December, along with the implementation of new homeownership measures prior to the holidays, even in the more expensive markets such as the Montreal CMA,” said Charles Brant, QPAREB’s market analysis director.

“Many households (nearly 20% of the latent demand since June 2024) have since been able to qualify [for a mortgage.] They have, in part, taken action after waiting for many quarters and despite an economic outlook that rapidly became tinged with uncertainty in January.”

Brant also acknowledged concerns surrounding consumer confidence amid broader economic uncertainty.

“It is true that these uncertainties have already been reflected by a slight decline in the consumer confidence index in January, particularly when it comes to buying a major asset, such as a property,” said Brant. “However, it is important to keep in mind that developments in trade relations with the United States could, as part of Canada’s economic support measures, lead to further rate cuts. For the time being, this remains the most important element of predictability for both buyers and sellers.”

Bank of Canada Governor Tiff Macklem has signalled more cuts could occur as a result of U.S. President Donald Trump’s threatened 25% tariffs.

The report also noted that the increase in sales activity has led to a drop in active listings, which remain below the historical average, keeping the market firmly in sellers’ territory. Single-family home prices also saw significant gains, rising 11% year-over-year.

With inventory tightening and demand remaining strong, QPAREB anticipates continued market momentum in the months ahead.

Photo: Brivia Group