Montreal Home Prices Have Risen By A Bonkers 20% Since Last Year But Is Anyone Surprised

As Montrealers contend with higher gas and grocery prices, the cost of housing is also increasing – and they might not level off anytime soon, according to new data.

The cost of real estate in Greater Montreal has increased by over 20% compared to last year, according to a new report released this week by the Canadian Real Estate Association.

Meanwhile, Quebec City's home prices increased by 13% amid what's been a record-breaking year for Canada's real estate market in terms of the number of sales.

"After a summer where it looked like housing markets might be calming down a bit, October's numbers suggest we might be moving back towards what we saw this spring, with regards to current market demand and supply conditions," stated CREA chair Cliff Stevenson.

"That said, one month of data is not a trend, so we'll be watching how the balance of this memorable year plays out closely."

With the price of the average home in Canada reaching $716,585 in October, up 18.2% from the same month last year, Quebec's numbers reflect a nationwide trend of year-over-year growth.

The good news is when the pricey Greater Toronto Area and Greater Vancouver area are excluded from the data, the figure falls to a slightly less frightening $561,585, so there's that. But "we need to build more housing," to keep up with accelerating demand, according to CREA senior economist Shaun Cathcart.

"2021 continues to surprise. Sales beat last year's annual record by about Thanksgiving weekend so that was always a lock, but I don't think too many observers would have guessed the monthly trend would be moving up again heading into 2022," Cathcart stated.

"With demand that strong, the supply of homes for sale at any given point in time continues to shrink. It is at its lowest point on record right now, which is why it's not surprising prices are also re-accelerating."

This article's cover image was used for illustrative purposes only.