Montreal Housing Market Outlook for 2023
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In January of this year, the Quebec Professional Association of Real Estate Brokers noted a 36% decline in real estate sales compared to January 2022. Residential sales in Montreal reached historic lows, with 1,791 sales for January 2023, the lowest seen since 2009.
February 2023 saw a sales decline of 32% when compared to 2022. Total sales of 2,996 reached a new low for February.
March 2023 saw sales decline 28% compared to 2022, the first month since September 2022, when sales declined below the 30% mark. Total sales of 3,947 reached a new low for the month.
With rising interest rates, many buyers are taking a cautious approach to real estate this year, though the demand to buy continues to hold strong. The Montreal market is reacting positively to the pause in interest rate hikes. While sales remain down, the decline is slowing, which is good news and may indicate a stabilizing market in the city.
Key Takeaways
- Prices are predicted to remain relatively the same, with only slight increases expected over the rest of 2023.
- Between January and March 2023, Montreal house sales have reached a historic low.
- While sales remain down, the decline is slowing, which is good news and may indicate a stabilizing market in Montreal.
Who’s buying Montreal real estate?
Montreal has been dubbed Canada’s cultural capital, so it’s no surprise that it is a world-class destination for all things culture and art. The city is the ideal home base for creators attracting top talent from every artistic discipline around the globe who are choosing to call Montreal home.
With lower housing costs when compared to other major cities like Toronto and Vancouver, Montreal is a more accessible market for first-time buyers looking to purchase their first home. With many tax credits like the up to $1500 Quebec Home Buyers’ tax credit and the Home Purchase Assistance Program, where depending on your situation, you could receive either a lump sum (new property) or a refund of the welcome tax (existing property), Montreal is an attractive market for first-time buyers.
More than 50% of properties valued at over $1,000,000 in Montreal were purchased by non-residents. This marks the highest number of luxury properties purchased by foreign buyers compared to all other major cities in Canada, like Toronto and Vancouver. With the new ban prohibiting foreign buyers for 2 years that came into effect at the beginning of 2023, it remains to be seen what impact this will have on the real estate market in Montreal for 2023 and beyond.
What are Average Home Prices in Montreal
As of March 2023, Montreal is seeing a slowdown in transactions and longer selling times. The average number of days a property is sitting on the market is 76, up 24 days from a year ago. Median prices are slowly showing signs of recovery, with single-family homes seeing a 4% increase over the previous month. Active listings have increased by 62% over the previous year, with 16,754 total listings recorded in March 2023.
| Month | Average Price | Units Sold | New Listings | SNLR |
| January 2023 | $529,020 | 1,791 | 4,598 | 38.95% |
| February 2023 | $535,190 | 2,996 | 5,314 | 56.38% |
| March 2023 | $550,956 | 3,947 | 6,487 | 60.84% |
The sales to new listings ratio (SNLR) is the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market where new listings outweigh sales – buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market meaning demand and supply are balanced. An SNLR of over 70% is considered a seller’s market.
As you can see, Montreal turned from a buyer’s market in January to a balanced market in February and March as new listings flooded the market. If this trend continues, Montreal may become a seller’s market by the summer.
Montreal Breakdown by Region
Below are the year-to-date average home prices in Montreal regions.
| Region | Average Home Price |
| Island of Montreal | $633,082 |
| Laval | $511,918 |
| North Shore of Montreal | $468,510 |
| South Shore of Montreal | $507,635 |
| Vaudreuil-Soulanges | $524298 |
| Saint-Jean-sur-Richelieu | $451,746 |
Frequently Asked Questions
Is the Montreal housing market going to crash?
The Montreal housing market has slowed down due to rising interest rates compared to previous years. So far, all signs point to a housing market that is beginning to show signs of recovery with the recent pause of interest rate hikes. It is doubtful that we will see the market crash.
Will Montreal housing prices increase in 2023?
To date, Montreal is seeing a steady increase in prices in 2023. Median prices are beginning to show signs of recovery, with a steady increase in home prices.
How do I get approved for a mortgage in Montreal?
To get approved for a mortgage in Montreal, the first step is to review the rates available and determine how much mortgage you can afford. Mortgage approval will depend on your credit score, available down payment, and debt-to-income ratios – with approval guidelines set out by the lender you choose.
Final Thoughts
Montreal’s real estate market is being driven by buyers who are taking a cautious approach to buying real estate in the face of rising interest rates. However, all signs seem to point to a market that is beginning to stabilize as sales increase with the recent pause in interest rate hikes. With a more accessible real estate market and a range of first-time home buyers’ tax credits, it’s safe to say that this city will remain the perfect place to settle for artists, creators and first-time buyers.
