The Quebec real estate board reported that home sales in the Montreal area fell by 10% year‑over‑year in July 2026, even as property values continued to climb across every type of residence.
The decline in transactions was recorded during what the board describes as an "adjustment phase" in the market. While fewer buyers completed purchases, average prices rose, indicating that demand remains strong enough to push values upward despite the slowdown in sales volume.
All segments of the housing market showed price increases, from detached houses to condominiums and townhouses. The board did not provide a specific percentage for the price growth, but the upward trend was consistent throughout the region. This pattern suggests that sellers are maintaining higher price expectations, possibly in response to earlier periods of rapid appreciation.
Industry analysts note that the July dip follows a broader national trend where several Canadian cities have experienced similar sales contractions while still seeing price gains. The adjustment phase may reflect a period in which buyers reassess affordability as mortgage rates and household incomes evolve, leading to a temporary reduction in the number of completed deals.
Despite the lower sales figures, the market’s resilience is evident in the continued price momentum. The board’s data indicate that the underlying demand for housing in Montreal remains robust, even as prospective purchasers become more selective. The combination of higher prices and fewer sales points to a market that is recalibrating rather than collapsing.
The board will continue to monitor the situation and release further statistics in the coming months, offering a clearer picture of whether the current adjustment will lead to a sustained slowdown or a brief pause before activity picks up again.