Toronto Condos Hit Four-Year Lows While Montreal’s Housing Market Surges

Canada’s housing market is sending mixed signals in mid-2025. While Toronto’s condo market has hit its lowest average price in four years, Montreal’s housing sector is experiencing a remarkable surge in sales activity. For mortgage professionals, real estate investors, and first-time buyers, this contrast offers both opportunities and cautionary lessons.

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Toronto Condo Market — The Slowdown Story

According to the latest Toronto Regional Real Estate Board (TRREB) data:

• The average GTA condo price in July 2025 was C$651,000, a 9.3% drop year-over-year.
• Prices are now at their lowest since February 2021.
• Inventory levels are well above seasonal averages, with more units sitting on the market longer.

Why This Is Happening

1. Excess Supply: Multiple new developments completed in the last two years have increased inventory.
2. Higher Borrowing Costs: Elevated interest rates are pushing buyers to either delay purchases or shift toward more affordable housing types.
3. Investor Pullback: Short-term rental rules and higher carrying costs have reduced investor appetite.

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Montreal Housing — A Surge in Demand

On the other side of the spectrum, Quebec Professional Association of Real Estate Brokers (QPAREB) data shows:

• Montreal home sales surged 9.7% YoY in July, marking the busiest July since 2021.
• Inventory remains tighter than Toronto, creating competition among buyers.
• Detached homes, townhouses, and condos all recorded increased activity.

Why Montreal is Different

1. Affordability Advantage: Despite recent price growth, Montreal homes remain more affordable than Toronto or Vancouver.
2. Steady Population Growth: Immigration and interprovincial migration are boosting demand.
3. Lower Investor Saturation: A larger share of buyers are end-users, keeping the market grounded.

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Toronto vs. Montreal — Market Snapshot

*Montreal average price is an estimate based on QPAREB data.

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What This Means for Buyers and Mortgage Brokers

Opportunities in Toronto

• First-Time Buyers: Lower prices improve entry opportunities—especially with the right mortgage product.
• Negotiation Power: Buyers can secure price reductions, incentives, and better terms from motivated sellers.
• Refinance Prospects: Owners may consider refinancing to consolidate debt at favorable terms when rates begin to ease.

Opportunities in Montreal

• Faster Closings: In a competitive market, mortgage pre-approvals can be a winning edge.
• Multiple Offer Preparedness: Brokers should help clients navigate bidding wars without overextending financially.
• Product Diversification: Consider fixed terms to protect against possible rate fluctuations.

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Mortgage Strategy Recommendations

For Toronto Clients:

• Offer rate-hold pre-approvals up to 120 days.
• Highlight blended-rate mortgages to bridge current and future rate environments.

For Montreal Clients:

• Prepare clients for shorter condition periods.

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Conclusion

The split between Toronto’s cooling condo market and Montreal’s rising sales reflects the diverse realities across Canada’s housing landscape. For buyers, this means understanding local dynamics before committing. For mortgage professionals, it’s an opportunity to adapt strategies and marketing to match each city’s unique conditions.