Montreal Real Estate Experiences Unexpected Increase in Sales of Homes Valued at $1 Million or More

Montreal’s real estate market has seen a surprising and unseasonably early uptick in sales of properties priced at $1 million or more in the first quarter of 2024. According to a report by Sotheby’s International Realty Canada, 378 residences in and around Montreal were sold for $1 million or more, marking a 53% increase compared to the same period last year.

The majority of luxury home sales in 2024 fell within the $1 million to $2 million range, with 318 homes sold in this category. Don Kottick, CEO of Sotheby’s International Realty Canada, noted that this price range was a significant area of activity in the market.

The rise in sales is in stark contrast to the first quarter of 2023 when Montreal experienced a 14% drop in sales of $1 million-plus homes. The surge in sales is attributed to factors such as high immigration and pent-up demand from buyers waiting for interest rates to stabilize.

While sales were stable in the $4 million-plus market, with eight homes sold in this category, there were no ultra-luxury sales (over $10 million) reported in the first quarter of 2024.

Kottick anticipates that the strong real estate market will continue, especially if the Bank of Canada decides to cut interest rates in the coming months. He emphasized that the $1 million to $2 million price range remains a sweet spot in the market and is expected to remain strong in the future.

Overall, Montreal’s real estate market is forecasted to grow by 2.5%, attracting skilled workers and families in need of housing. With steady gains expected in the months ahead, the region’s economic prospects remain stable, driving sales activity in both conventional and luxury real estate markets.