I don't know the real estate situation in Montreal but am amazed at the high prices in Toronto.
Homes that are smaller than mine in Phoenix (about 2300 sq feet) are valued at $1.5-$2m in the downtown Toronto area. I have a Toronto friend that may be selling and helping him a bit.
I have a FrankLloyd Wright like home, 0.25 acre lot, with great views overlooking the N Valley about 20 minutes North of downtown. I bought my Phoenix home in a bidding war above list price at the peak in 2007 for $410k. I added about $50k-100k of improvements!
Now, after the huge decline of values with Phoenix being one of the hardest hit cities in the Great Recession, is worth about $375k vs. $1.5m-$2m in Toronto it seems. Prices in the outlying areas of Toronto are not much lower than downtown homes and lots of condos
Toronto values are unreal to me and while slowing does not seem to be in a bubble. Toronto isn't a high salary high tech city like Silican Valley CA area. I wonder how folks afford such costs when average incomes are not that much higher than in Pheonix in $US.
It seem that one difference may be that while Phoenix continues to be one of the fastest growing cities in the U.S. (no snow, cold, tornados, floods, hurricanes or earthquakes!) and a dynamic growing tech industry, we have a huge valley to spread out into. At one point with an annexation Phoenix was larger in the city limits than Los Angeles plus we have rapidly growing outer near by areas i.e. like Mississauga etc in Toronto.
The only limit is areas have to prove they have a 100-year supply of water before building permits will be issued. Builders have also have problems from the shortage of skilled labor that they used to rely on Mexican folks for .
I wonder what a similar home would be in a good area of Montreal. Not that I am moving there - too much snow and cold in the winter!