The first quarter of 2026 delivered a clear signal: Montreal's real estate market has shifted from the frenzied conditions of 2021-2022 into something more nuanced, and more interesting, for serious buyers and sellers alike. Here is what the data shows, and more importantly, what it means for you.

The Headline Numbers

Across the island, median single-family home prices settled at approximately $805,000 in Q1 2026, representing a 4.2% increase year-over-year. Condominiums tracked more modestly at $430,000 median, up 2.8% from Q1 2025. Average days on market across all property types came in at 47 days, a marked improvement from the 68-day average seen through most of 2025.

These numbers tell a story of a market finding its equilibrium. The buyers who rushed the exits in 2022-2023 have largely been replaced by qualified, motivated purchasers who have absorbed higher financing costs and made their peace with today's rate environment.

Where the Action Is: Neighbourhood Breakdown

Not all neighbourhoods are performing equally. The data reveals clear divergences that any serious participant in the Montreal market needs to understand.

Plateau-Mont-Royal

Median SFH: $1,050,000 | Median Condo: $520,000 | Avg DOM: 31 | Total Sales: 87

The Plateau continues to outperform the island average on virtually every metric. Properties priced correctly are generating multiple offers within two weeks. The inventory problem here is acute: there are simply not enough well-maintained homes to satisfy demand, which structurally supports prices regardless of broader rate conditions.

Ville-Marie

Median SFH: $980,000 | Median Condo: $485,000 | Avg DOM: 41 | Total Sales: 203

Downtown condo inventory remains elevated relative to 2021 highs, but absorption rates are improving. Buyers are returning to the urban core as remote-work mandates soften. The sweet spot remains 2-bedroom units in buildings with strong financials and below-average condo fees.

Outremont

Median SFH: $1,420,000 | Median Condo: $670,000 | Avg DOM: 28 | Total Sales: 34

Outremont's liquidity remains low by design. The neighbourhood's tight housing stock and established buyer profile mean that well-presented properties move quickly when correctly priced. This is not a neighbourhood where you test the market with an aspirational number.

Interest Rates: The Elephant in Every Room

The Bank of Canada's rate trajectory has dominated every real estate conversation for three years. The practical reality in Q1 2026 is that buyers have adapted. Variable-rate mortgages have become more attractive as the BoC has moved rates lower from their 2023-2024 peaks, and fixed 5-year terms are now accessible in the 4.5-5.2% range depending on lender and profile.

The buyers who are sitting on the sidelines waiting for rates to return to 2.5% are making a costly calculation error. Prices have already adjusted; waiting for the perfect rate environment means competing against an entirely different cohort of buyers in a potentially tighter inventory environment.

What Q2 2026 Will Likely Look Like

Based on Q1 trajectory and seasonal patterns, expect Q2 to bring increased inventory (spring listings always spike), sustained buyer demand, and continued compression of days on market in supply-constrained neighbourhoods. Sellers who list in April and May historically capture better outcomes than those who wait until summer.

The macro environment supports moderate price appreciation through year-end. The wild cards are any material shift in BoC policy and any federal policy changes affecting foreign buyers or mortgage qualification. Neither looks imminent based on current signals.

The Practical Takeaway

For buyers: pre-approve now, focus on neighbourhoods where you understand the long-term demand drivers, and be prepared to move decisively on well-priced properties. For sellers: Q2 is historically your best window. Price at market from day one and let competition do the work.