Montréal’s housing market began 2026 with a continuing slowdown in sales activity, extending a moderation that began in late 2025. While transaction volume has decreased, price growth remains positive, indicating a shift towards more balanced conditions rather than a correction, according to data released this week.
The volume of transactions has notably decreased compared to the previous year, impacting both single-family homes and condominiums. However, plexes – multi-unit dwellings – have proven relatively resilient, diverging from trends observed in other provinces, where investment properties have seen more significant declines. This suggests continued demand for income-generating assets despite affordability pressures impacting first-time homebuyers.
Despite the decrease in sales, property prices in Montréal continue to rise across major property categories. The rate of growth is more moderate than during the periods of rapid acceleration, but limited supply continues to support values. The median price of a property in Montréal reached $579,900 in January, a 5.7% increase year-over-year, according to the Association professionnelle des courtiers immobiliers du Québec (APCIQ). Single-family homes saw a 6.2% increase, reaching $684,200, while condominiums rose 4.3% to $433,400.
The condo segment is showing clearer signs of normalization, with inventory increasing more markedly than in the single-family home category. When listings increase while sales decrease, negotiating power shifts slightly towards buyers. However, conditions remain far from a true buyer’s market, representing a gradual rebalancing rather than a surplus.
Properties in Montréal are not remaining on the market for excessively long periods, despite the slowdown in sales. The average number of days on market remains below long-term historical averages in most segments of the metropolitan area. This indicates that demand continues to effectively absorb well-priced properties. The slowdown is primarily due to a smaller number of qualified or willing buyers, rather than a lack of interest in the market.
Several structural forces point towards moderation rather than a decline. Mortgage rates have stabilized, reducing uncertainty, although they have not returned to the levels seen during the pandemic. Rental construction remains strong, which will increase future supply and gradually increase vacancy rates. Younger households face affordability and employment constraints, limiting the momentum of first-time buyers. Existing properties remain more attractive than new constructions due to high construction costs.
Montréal is experiencing a healthy adjustment phase rather than a marked weakening, reflecting stabilization after a period of acceleration. Indicators of financial distress remain contained, and supply in key segments remains below levels likely to trigger a price decline. The sales-to-new listings ratio (SNLR) was 36% in January, indicating buyer’s market conditions across Montréal, according to APCIQ.
The average rent in Montréal is currently $1,913 as of January, with a one-bedroom apartment averaging $1,710 and a two-bedroom unit at $2,216. Rental rates have seen a slight decrease year-over-year, but remain elevated due to ongoing demand.
