Montreal Real Estate Slump Deepens: January 2026 Sales Drop 15% YoY
Event summary
- January 2026 Montreal CMA residential transactions fell 15% YoY to 2,364 sales
- Plexes were the only property type with positive growth (+7% YoY)
- Condominium listings surged 18% YoY, pushing supply above 10-year average
- Median prices rose across all categories: single-family homes (+4%), condos (+2%), plexes (+8%)
- Average days on market decreased for all property types (50 days for single-family homes)
The big picture
The Montreal real estate market continues to experience a downturn that began in late 2025, driven by persistent supply shortages and affordability challenges. Despite slower sales, seller advantages remain strong due to inventory scarcity, particularly for single-family homes and plexes. The condominium market shows early signs of rebalancing, which could indicate broader shifts in market dynamics. The stabilization of interest rates by the Bank of Canada may provide some predictability for buyers, potentially reviving deferred purchasing plans.
What we're watching
- Market Rebalancing
- Whether the condominium segment's rebalancing will spread to other property types...
- Interest Rate Impact
- How stabilized interest rates will affect buyer activity and market momentum...
- Supply Constraints
- The pace at which single-family home supply shortages will be alleviated...