1. Home Prices Will Keep Rising, But More Moderately
Because of the continuing shortage of housing supply in and around Montreal, average home prices—especially for single-family homes, townhouses, and condos for sale—are expected to increase in 2026, but at a slower pace compared to recent years. The market is likely to move from strong double-digit growth to something more modest—perhaps 1-3% annually in many neighborhoods.
- Detached homes and luxury properties may see stronger gains, particularly in sought-after areas like Downtown Montreal, Griffintown, Ville-Marie, or Old Montreal.
- Condominiums in central and highly walkable neighbourhoods will still increase in value, but smaller units may underperform compared to larger floor plans as buyers continue to demand more space.
This prediction is supported by current data showing that housing starts are not keeping up with demand in Quebec, pushing prices up due to limited supply.
2. More Listings, But Still a Seller’s Market in Many Areas
In 2026, inventory of homes for sale in Montreal CMA (Census Metropolitan Area) will likely grow. We are already seeing that listings are rising, particularly for condominiums. That increased supply could ease some of the pressure on prices.
However, the seller’s market will persist in many desirable neighbourhoods (Old Montreal, Plateau Mont-Royal, Griffintown, Verdun, etc.), where demand is strong and supply remains thin. Buyers will still face competition, especially for single-family homes, plexes/duplexes/triplexes, or luxury condos. Overbidding may not be as extreme, but it won’t disappear completely in hot markets.
3. Rental Market Pressures Will Remain, But Might Ease Slightly
Demand for rental housing in Montreal has been strong, pushing rents high. According to recent data, in Montreal average asking rents have increased steeply—much faster than wages.
In 2026, while renting will still be costly in many areas, the growth rate of rents may begin to moderate. Why? Because new construction—especially purpose-built rental units—is increasing, which will eventually add more supply. Also, population growth (especially non-permanent residents) is expected to slow under new immigration targets, which will dampen demand growth. Thus, rental vacancy rates should slowly improve (though affordable units will remain scarce).
4. Mortgage Rates, Interest Rates & Affordability Will Be Key Wildcards
Mortgage rates and interest rates will heavily influence how quickly people move to buy, how much they pay, and whether they decide to sell. In 2025, there has been a trend of lower interest rates and more favourable mortgage terms, which is helping push up existing home sales.
In 2026, if the Bank of Canada continues to cut policy rates, variable-rate mortgages may become more attractive, spurring some additional demand. However, fixed mortgage rates may lag, because they depend more on bond yields and broader economic conditions. If rates remain high or rise again, this could limit how far price increases go, especially for first-time homebuyers. Affordability will be increasingly stressed in outer suburbs and popular neighbourhoods. Many buyers will shift preferences toward condos for sale Montreal, townhouses, or plexes / duplex / triplex as more affordable alternatives to detached homes.
What Real Estate Agents (Courtier immobilier / Realtor) Should Watch Out For
- Emphasize neighbourhood-based keywords: Old Montreal real estate, Griffintown condos for sale, Plateau Mont-Royal house for sale, Verdun duplex for sale.
- Highlight affordability and comparisons: first-time buyer options, condos vs houses, duplex/triplex value vs single family.
- Use content about mortgage rates, interest rate forecasts, and how those affect buying power.
- Address rental vs purchasing decisions, as many people will be analyzing whether to rent or buy in 2026.
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