1.5 million, 900 thousand, 500 thousand, 1 million, 600 thousand – These are some of the prices you’ll be paying for a home on the island of Montreal. 

The average price for homes sold in Montreal reached $557,009 in October 2022. In October 2017, this average was $329,300. 

Housing prices have been steadily increasing over the last few decades. The average cost of a Canadian home has increased by more than $250 thousand since 1980. In September, the average Canadian home was priced at $746,000. This is an increase of almost $500,000.

Canada's inflation rate just decreased to 7.7%, down from 8.2% in September. Interest rates are now at 3.75%, but in March it was 5.7% – the highest it's been in 30 years.

Scott Satov, CEO of Montreal-based loan comparison platform Loans Canada said Canada's interest rate is at 3.75%. He said this is the highest overnight rate made by The Bank of Canada.

Both inflation and interest rates affect those who have bought or are looking to buy a home.

Satov said inflation is affecting housing, as it's increasing the value of real estate, adding that inflation causes interest rates to rise.

Interest rates affect those looking to borrow from the bank to buy a home and they also affect homeowners who do not have a fixed interest rate — causing their mortgage payments to increase.

House prices in Montreal are much cheaper than other places in the country, including Toronto or Vancouver, but many who have saved for years are finding it nearly impossible to buy. Homes they once dreamed of are now far out of their budget. 

To understand alternate forms of housing outside of the rental or buying market in Montreal, watch Local 514's most recent episode.