Montreal Housing Market
Despite being one of the largest real estate markets in Canada, the Montreal real estate market has remained more affordable than the Toronto and Vancouver real estate markets. Home prices in Montreal are slightly lower than the Hamilton real estate market and the Ottawa real estate market, even though they are much smaller real estate markets than Montreal.
Home prices in the Montreal real estate market have declined over the past 15 months following rate hikes by the Bank of Canada and its quantitative tightening (QT) measure aimed at curbing the high rate of inflation. Meanwhile, rising mortgage rates in Montreal and Quebec have made housing unaffordable, limiting demand from home buyers in Quebec. The Bank of Canada raised its key rate to 5% in July 2023. This has made borrowing more expensive, and many buyers are now hesitant to withdraw from their TFSA or RRSP to buy a home in Quebec.