Montreal is weird. Well, its real estate market is, anyway. While the rest of Canada's "big three" cities are watching home values slide toward a multi-year low, the 514 is basically doing its own thing. If you’ve been doom-scrolling through national headlines about the housing market "reset," you're probably seeing a lot of red. Toronto and Vancouver are taking a beating. But Montreal real estate news for early 2026 tells a much more resilient story.
Honestly, it’s a bit of a localized miracle. As of mid-January 2026, single-family home prices on the island have actually hit a new high. We're looking at a benchmark price of roughly $693,900, which is a 6.5% jump from this time last year. You've got to wonder how that's possible when the Bank of Canada is keeping everyone on their toes.
The Great Divergence
The most striking thing about the current data is how Montreal is separating itself from the pack. In the fourth quarter of 2025, while Toronto home prices dipped by nearly 6%, Montreal posted a 4.5% gain. Phil Soper from Royal LePage basically calls it a "window of opportunity," but that window looks very different depending on what you’re trying to buy.
If you want a house with a yard? Good luck. Inventory for detached homes hasn't moved. It’s flat. Sellers are holding onto their 2% or 3% mortgage rates like life rafts, refusing to move unless they absolutely have to. This "lock-in" effect is real. It’s creating a structural shortage that keeps prices climbing even when buyers are being cautious.
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Condos are a different animal. The "soft patch" RBC Economics mentions is mostly hitting the high-rise towers downtown. Condo inventory is actually up about 12% compared to last year. If you’re a buyer, this is your playground. You have leverage here. You can actually negotiate.
Bill 16 and the "Hidden" Costs of Condos
There is something most people are missing in the current Montreal real estate news cycle: the impact of Bill 16. It’s not just "paperwork." As of late 2025, every condo building in Quebec is now legally required to have a professional maintenance logbook and a reserve fund study.
Why does this matter to you?
Because it's exposing which buildings were managed well and which were essentially ticking financial time bombs. When you look at a listing now, the seller has to provide a "co-ownership certificate." If that document shows a massive gap in the reserve fund, that "cheap" condo isn't actually cheap. You'll be hit with special assessments or a massive hike in monthly fees within months of moving in.
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"We see the road ahead remaining bumpy... plenty of inventory generating headwinds in the condo sector," notes RBC Economics.
Why the "Crash" Never Happened Here
People have been calling for a Montreal crash since 2022. It hasn't arrived. Part of that is the "relative" affordability. Even with prices up, $693,000 for a house is a dream for someone in Vancouver. We’re also seeing a shift in where people live. The South Shore and Laval are still seeing steady demand, but the "island" itself remains the gold standard for long-term value.
Then there's the rental market. It’s tight. Like, "lineup around the block for a 4 1/2" tight. Average rents have hovered around $1,936, and that high cost of renting is forcing people to stay in the buyer's market even if rates are higher than they’d like. They figure they might as well pay their own mortgage instead of their landlord's.
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What’s Coming This Spring?
The 2026 spring market isn't going to be the "wild west" of 2021. No more blind bidding wars with twenty offers on a Friday night. It’s going to be "selective."
- Price Sensitivity: If a house is priced $20k too high, it will sit. Buyers are smart now. They have apps. They know the comps.
- Plexes are King: Properties with 2 to 5 units are the "standout segment." Why? Because you can live in one and let the tenants pay half your mortgage. Plex sales were up nearly 19% year-to-date at the end of 2025.
- The Rate Thaw: Most experts, including those at Desjardins, expect a "reset." Not a drop to zero, but a stabilization.
Actionable Steps for Montrealers
If you're actually looking to move in the next few months, don't just follow national news. It'll lead you astray.
- For Buyers: Target the condo market, but be ruthless with the Bill 16 documents. Ask for the reserve fund study immediately. If the syndicate hasn't done one, walk away. There are enough listings now that you don't have to settle for a building with bad finances.
- For Sellers: The "easy money" era is over. You need to prep the house. If there’s a crack in the foundation or an old roof, fix it or price for it. Buyers are looking for reasons to say no because their monthly payments are higher than they used to be.
- For Investors: Focus on "ground-oriented" homes. Row houses, townhomes, and plexes. The demand for actual dirt and a front door is much higher than the demand for a 40th-floor studio.
The bottom line is that Montreal isn't Toronto. We don't have the same massive inventory of unsold investor condos clogging the pipes. We have a genuine shortage of family homes and a very disciplined buyer pool. It’s a boring, stable market—and in real estate, boring is usually a good thing.