2024 West Island Highlights

“Fourth-quarter results are primarily due to last October's 50-basis-point cut to the Bank of Canada's key lending rate,” said Dominic St-Pierre, executive vice-president of business development, Royal LePage. "This gave buyers who had hit pause a clear signal to move forward with their purchase plans, or at least the confidence to get back on track. Activity quickly picked up in November. Then, a second 50-basis-point cut in the policy rate was announced in December as an additional 'gift under the tree', releasing another wave of demand in several markets across the province."

1. The aggregate price of a home in the region rose 8.2% year over year in the fourth quarter of 2024 to $613,300.  
2. First-time buyers rushed back into the market, while investors and move-up buyers returned to the market at the end of the year. 
3. New mortgage rules were implemented to alleviate some of the barriers to home ownership, including extending the amortization period to 30 years for all new construction purchases and all first-time buyers, as well as a relaxation of the mortgage stress test rules for those considering switching lenders upon renewal.
   

2025 Forecast for Greater Montreal*

The West Island market remained strong in 2024, supported by healthy buyer demand and continued low inventory in the under $1,500,000 price ranges:

1. Home Prices Increased 4% Year-over-Year: A late surge in Q4 drove much of this growth, particularly in homes under $1.5M.
2. Sales Volume Rose by 21%: This significant increase compared to 2023 reflects renewed market confidence.
3. Homes Took Longer to Sell: The average days on market rose to 57 up from 53 in 2023, indicating buyers were more deliberate in their decision-making.

Falling interest rates and a return to balanced market conditions created opportunities for buyers while keeping demand high in lower and mid-range price segments. Q4 was particularly active with the return of multiple offers on lower priced (under $1M) homes in both the single family and condo segments of the market. 

2025 Forecast for Greater Montreal*

The Greater Montreal Area is expected to outpace other major Canadian markets in 2025, with aggregate home prices projected to rise 6.5% year-over-year to $655,082. The median price of a single-family home is forecast to increase 7.5% to $750,780, while condominiums are expected to rise 6.0% to $507,210.

Gains in activity are the result of renewed consumer confidence, following five consecutive rate cuts by the Bank of Canada in 2024. Despite current economic and geopolitical tensions, there are a number of positive factors to look out for, which should bolster the province's and the country's real estate market performance in the months ahead.

2025 West Island Forecast

The West Island remains one of the most desirable markets in the Greater Montreal Area, offering excellent schools, community amenities, and family-oriented lifestyles. As 2025 unfolds, demand is expected to remain strong, fueled by improved borrowing conditions and string demand for suburban living both in the single family and condo segments of the market. Further rate cuts should inject some increased buyer activity in the luxury segment of the market. We expect a very busy and early spring market. 

Key Market Trends for 2025

1. Interest Rates and Buyer Activity

Lower borrowing costs and government programs aimed at first-time buyers are expected to drive demand. However, limited housing supply will likely push prices higher across the board.

2. Return to Urban Centers

Post-pandemic, more buyers are returning to urban areas, creating renewed competition for properties on the Island of Montreal. Affordability challenges, however, continue to push families toward suburbs like the West Island and even more remote regions.

3. Inventory Constraints

While some neighborhoods and market segments have seen modest inventory increases, the overall market remains undersupplied. This imbalance will keep competition high, particularly in family-friendly areas like the West Island for homes priced under $1.5M.

Advice for Buyers and Sellers

1. For Buyers

Timing will be key. With interest rates dropping and prices forecast to rise, acting early in 2025 may help you secure better deals before increased buyer competition heats up the market.

2. For Sellers

Montreal's family-friendly neighbourhoods and limited inventory make it a prime seller's market. Homes that are move-in ready or upgraded to meet today's buyer expectations will perform particularly well. Listing in the first half of the year could help you maximize your return. A data-driven and realistic pricing strategy is crucial to attract interest.

Whether you're looking to buy, sell, or simply learn more about the market, we are here to guide you every step of the way. Let's connect and make 2025 your best year yet!

Contact us today to discuss your real estate goals or gain further insights into the West Island and Greater Montreal markets.

*source Royal Lepage Canada