Sales drop 7%. Prices climb 6%.
That's Montreal's housing market in May 2026 — fewer buyers, higher tags, and a condo glut that's finally showing up in the numbers.
What Happened in Montreal Home Sales May 2026?
Montreal home sales May 2026 fell 6.8% year-over-year. The Quebec Professional Association of Real Estate Brokers reported 4,623 residential properties sold, down from 4,962 in May 2025. Every property type — single-family homes, condos, plexes — recorded a decline.
But here's the weird part: median prices kept climbing.
Plexes jumped 6.1% to $875,000. Single-family homes rose 3.2% to $645,000. Condos inched up 0.6% to $430,000.
The disconnect? Supply's building faster than demand can absorb it — especially for condos — but sellers haven't blinked yet on price.
Why Are Fewer People Buying Homes in Montreal Right Now?
Two forces are cooling demand. First, Montreal's unemployment rate spiked from 6.3% in January to 7.7% by April — the highest since 2016, pandemic months aside. Job loss makes buyers cautious. According to Statistics Canada labour force data, uncertainty around income stability pushes mortgage approvals down.
Second: immigration restrictions.
Population growth in Montreal slowed sharply in recent months. Fewer newcomers means fewer first-time buyers competing for starter homes and rental properties.
Charles Brant, the board's market analysis director, summed it up: "Greater caution among buyers." When jobs feel shaky and new arrivals drop off, people delay big purchases.
What's Happening With Condo Inventory in Montreal?
Condo supply is climbing at a particularly rapid pace — especially on the Island of Montreal, the North Shore, and the South Shore. Total inventory hit 21,073 units in May, up 13.7% year-over-year. That's the 10th straight month of rising supply.
New listings totalled 7,564 in May, a 1.5% bump from last year. Condos are piling up because developers kept building through the pandemic boom, but demand didn't keep pace once interest rates rose and immigration slowed.
Here's the thing: more inventory usually eases pressure on prices. Montreal's condo market is showing early signs of that — the 0.6% price gain for condos was the smallest of any property type in May.
Should You Wait to Buy a Condo in Montreal?
If you're eyeing a condo, the balance is shifting your way. With 10 months of inventory growth and only a 0.6% price gain, sellers are losing negotiating power. That doesn't mean prices will crash — Montreal's fundamentals are still solid — but you're no longer bidding against five other buyers on every unit.
Picture this: you're pre-approved, condo hunting on the South Shore, and you find a unit listed at $440,000. Six months ago, it would've sold in a weekend at asking or above. Today, it sits for three weeks, and the seller entertains your $425,000 offer.
Timing matters.
If you're ready to move and you've got stable income, buying into a softer market means less competition and more room to negotiate. If your job's shaky or you're waiting for rates to drop further, talk to a mortgage broker before you lock in.
How Do Rising Prices and Falling Sales Fit Together?
It sounds contradictory: fewer sales, higher prices. But Montreal's market is segmented. Single-family homes and plexes still see multiple offers in desirable neighbourhoods — those prices keep climbing because supply remains tight.
Condos, though? Different story. Inventory's building, buyers are more cautious, and price growth has nearly stalled. Hélène Bégin, the board's senior economist, noted that "fewer properties are being sold despite the more abundant supply."
That gap between supply and demand is where negotiating power lives. If you're shopping for a condo, you're in a better spot today than you were six months ago. For single-family homes, the market's still competitive — but not at the fever pitch of 2021.
What Does This Mean for First-Time Buyers in Montreal?
First-time buyers face a mixed bag. On one hand, rising unemployment and immigration slowdowns mean fewer competitors in the market. On the other, median prices are still climbing — a $645,000 single-family home requires a significant down payment even with 5% down for first-time buyers.
Condos offer a more accessible entry point. At a median of $430,000, you're looking at roughly $21,500 down (5%) plus closing costs. With inventory rising and price growth slowing, you've got more time to shop and more room to negotiate than you did last year.
The key: get pre-approved before you start looking. Knowing your budget and monthly payment helps you move quickly when you find the right place. Arch Canada can match you with a broker who understands Montreal's market and can walk you through your options.
Frequently Asked Questions
Why did Montreal home sales drop in May 2026?
Montreal home sales fell 6.8% in May due to rising unemployment (7.7% in April, the highest since 2016) and slower population growth from immigration restrictions. Both factors made buyers more cautious.
How much inventory is available in Montreal's housing market right now?
Total inventory hit 21,073 units in May 2026, up 13.7% year-over-year. That's 10 straight months of rising supply, especially for condos on the Island and both shores.
Should I buy a condo in Montreal if prices are still rising?
Condo prices rose only 0.6% in May — the smallest gain of any property type — while inventory surged. More supply and fewer buyers give you negotiating room now that wasn't there six months ago.