Montreal's property market puzzle: why condos trump houses for buyers
Montreal's property market is proving a tale of two cities. While both detached houses and condominiums favour sellers, the gap between these segments has widened dramatically, creating distinct opportunities and perils for buyers navigating Canada's second-largest metropolis.
Houses: A seller's paradise
The detached house market has become a battlefield where buyers arrive armed with little more than hope. Inventory has withered to a mere 2.9 months of supply, down 15% from last year, while purchase demand has surged 10%. With active listings shrinking by 5%, buyers face the unforgiving arithmetic of too much money chasing too few homes.
The numbers tell the story of a market in overdrive. Benchmark prices have rocketed to $645,700, climbing 9% in just three months. Even the typically more stable median price, now at $625,000, has risen 6% over the same period. Such rapid appreciation suggests the frenzy has only just begun.
Montreal has been insulated from the impact of the U.S. Trade War, unlike other Canadian markets.
Bloomberg May 15: Canadian Home-Price Declines Accelerate Amid US Trade Tensions
Condos: Breathing room in a tight market
The condominium market, while hardly a buyer's paradise, offers a markedly different picture. True, months of inventory have fallen more sharply, down 21% to 4.8 months, but this decline masks a crucial detail. Active listings actually rose 6% even as demand increased 8%. This suggests supply is managing to keep pace with appetite, creating a more civilised battleground.
Price movements reflect this relative restraint. Benchmark condo prices, at $593,000, have crept up a modest 1% over three months. The median price of $598,500 has remained entirely flat. For buyers, this translates to time—that rarest of commodities in today's market—to deliberate and negotiate.
The arithmetic of advantage
The $50,000 gap between median house and condo prices represents more than mere affordability. It reflects fundamentally different market dynamics. House buyers face a perfect storm of limited choice, fierce competition, and relentless price pressure. Condo buyers, while still operating in seller-friendly territory, encounter a market where patience and strategy can still yield results.
Consider the negotiating landscape. House buyers often find themselves in bidding wars with little room for conditions or price discovery. Condo buyers, benefiting from increased listings and more measured price growth, retain some leverage—a precious commodity in today's environment.
A clear verdict
For buyers entering Montreal's property market, the choice is stark. The condominium segment offers superior conditions across virtually every metric that matters: better inventory levels, price stability, and crucially, the possibility of negotiation rather than capitulation.
This does not suggest that condo buying has become easy, but it remains more accessible. The detached-house market, by contrast, has evolved into something resembling a financial stampede, where success depends less on strategy than on speed and deep pockets.
Montreal's property market may be telling a tale of two cities, but for buyers, only one offers a reasonable path to homeownership. The wise money follows the numbers: in this market, condominiums represent the last bastion of buyer opportunity in an increasingly seller-dominated landscape.
