The Montreal-area real estate market demonstrated notable resilience in 2025, closing the year with a significant overall gain despite a seasonal slowdown at year's end. According to the latest data from the Quebec Professional Association of Real Estate Brokers (QPAREB), home sales across the Greater Montreal census metropolitan area (CMA) rose by 8% for the full year of 2025. This positive annual trend unfolded even as transactions experienced a predictable dip in the final month.
Annual Growth Overshadows December Slowdown
The 8% annual increase in residential sales across the Montreal region highlights a market that regained momentum through much of the year. This growth is particularly significant given the economic headwinds and higher borrowing costs that characterized parts of the period. The data, released by the real estate board on January 09, 2026, confirms a robust recovery trajectory for the housing sector in Canada's second-largest metropolitan area.
However, the report also notes a contraction in activity as the calendar turned. December 2025 saw a decrease in sales volume compared to the previous month, a pattern often attributed to seasonal factors such as holiday distractions and colder weather, which typically slow buyer and seller activity. This monthly cooldown did not erase the substantial gains accumulated over the preceding months.
Market Dynamics and Contributing Factors
Several factors likely contributed to the 2025 upswing. A gradual stabilization of interest rates, pent-up demand from previous years, and a strong regional economy may have encouraged more buyers to enter the market. The sales increase was observed across various property types, including single-family homes, condominiums, and plexes, indicating broad-based demand.
The performance of the Montreal market stands in contrast to some other major Canadian cities, showcasing the unique economic and demographic drivers within Quebec. The sustained activity suggests that consumer confidence in real estate as a long-term asset remained firm throughout the year's economic fluctuations.
Outlook and Implications for 2026
The year-end report from the real estate board provides a foundation for cautious optimism as the market moves into 2026. The solid annual growth suggests underlying strength, while the December pause may represent a temporary reset rather than a trend reversal. Industry analysts will be watching key indicators in the first quarter, including inventory levels, new listings, and price trends, to gauge whether the positive momentum can be sustained.
For prospective buyers and sellers, the data underscores the importance of viewing market performance through both a long-term and seasonal lens. The 8% annual sales increase signals an active and competitive environment, a key consideration for anyone planning a real estate transaction in the Montreal area in the coming months.
