Montreal real estate market sees unprecedented winter surge

• Montreal's real estate market shows unexpected strength in early 2025, a break with typical seasonal trends.
• Political changes as well as market recovery from previously high interest rates contribute to increased demand.
• Generally, real estate brokers and experts are calling for growth in the market for 2025.

The Montreal real estate market is showing unexpected vigor in what traditionally has been a quiet season. Sellers in both residential and commercial sectors are seeing multiple offers become the norm and generally, excitement for a strong year is permeating the market. 

We spoke to Jaclyn Rabin, real estate broker for Keller Williams Prestige and owner of Jaclyn Rabin Immobilier Inc., to understand what's happening in the market as the year starts.

Early momentum: The Montreal real estate market is defying traditional seasonal patterns with strong activity in early 2025. "January is not always the best month for real estate sales. But it's been a very strong January and February because people anticipate the market will be too hot this coming spring," says Rabin.

Market recovery: Following a challenging last few years, the market has found new stability and energy. "It's a big improvement over the really high interest rates . Now we're starting to see that shift back into more of a balanced seller's market," Rabin notes.

Commercial sector heat: The commercial real estate segment is experiencing particularly intense activity, with properties attracting multiple offers immediately. "I'm seeing multiple offers in the multi residential space. Properties are receiving 10+ offers as soon as they hit the market despite having a low cap rate or high dollar per door," Rabin explains.

Interest Rate Impact: Anticipated interest rate cuts are driving current market dynamics, creating urgency among buyers. "More rate cuts create more demand. Prices go up. We see more bidding wars and things like that," says Rabin. Highlighting the market's response to monetary policy shifts, she adds, “Overall, I'm seeing a lot of excitement in the market, a lot of movement.”

Political Influence: Political developments are affecting market sentiment. "With Trudeau's announcement, people have mixed feelings about a new government. I'm seeing a lot of excitement, especially in my more experienced clients... Many clients who have been putting their moving or selling projects on hold are starting to think about it because they have a lot of equity in their property or building," Rabin observes.

Market Adaptation: The nature of the market requires flexibility from both professionals and clients. Looking forward to how the year will play out Rabin adds, "I've been in real estate since 2012, so I've lived through several different types of markets. I'm very good at shifting my business accordingly. We ride the wave... You have to be prepared to support your clients at a very high level, no matter how that looks."