Montreal Real Estate Market Cools as Sales Drop 7% Amid Rising Inventory
Event summary
- Montreal CMA saw 4,623 residential sales in May 2026, a 7% YoY decline, with all property types (condos, single-family homes, plexes) experiencing drops.
- Active listings rose 14% YoY to 21,073, with condos seeing the steepest inventory increase (+19%).
- Median prices continued to rise (1-6% YoY), but market conditions shifted to favor buyers in downtown Montreal and balanced conditions in central condo neighborhoods.
- Unemployment in Greater Montreal rose to 7.7% in April 2026, while population growth slowed due to immigration restrictions.
The big picture
Montreal's real estate market is showing signs of cooling as economic pressures mount. The 7% decline in sales and rising inventory suggest a shift from seller's to buyer's markets in key areas, particularly for condos. This trend aligns with broader demographic and labor market challenges facing major Canadian cities. The balance between supply and demand will be critical to watch as affordability concerns persist.
What we're watching
- Demand Pressures
- How sustained unemployment and immigration restrictions will affect Montreal's real estate demand.
- Market Balance
- Whether rising inventory will shift more neighborhoods to buyer-favorable conditions.
- Price Stability
- The pace at which price growth moderates as supply increases and sales slow.