Quebec’s property market is expected to face significant price increases in 2025, with an average rise of 7%, particularly impacting single-family homes. Royal LePage forecasts a continued competitive environment among buyers amid economic uncertainties. First-time buyers are re-entering the market, spurred by recent interest rate cuts. The median property price in Quebec is projected to reach around $600,000, with notable increases across various regions, including Greater Montreal and Quebec City.
Rising Property Prices in Quebec for 2025
Quebec homebuyers should brace themselves for a more financially demanding journey if they wish to own property in 2025. According to predictions, average property prices are set to soar by 7%, and the increase may be even steeper for those aiming to purchase single-family homes.
These insights come from Royal LePage, which has just released its forecasts for the upcoming year. Despite looming geopolitical and economic uncertainties, the real estate agency anticipates a “fierce competition” among buyers, which could further accelerate price hikes.
Royal LePage’s executive vice president of business development, Dominic St-Pierre, believes that this trend will characterize much of the first half of 2025. The forthcoming announcements from the Bank of Canada, expected at the end of January and again in mid-March, will significantly influence market conditions.
Currently, Royal LePage predicts that property prices will rise to approximately $600,000 in 2025, reflecting a 7% increase from the average price of $560,500 noted in the last quarter of 2024.
First-Time Buyers Make a Comeback
In December, the Professional Association of Real Estate Brokers of Quebec reported a remarkable 52% increase in residential transactions compared to the same month the previous year. This surge is primarily attributed to the five consecutive adjustments of the key interest rate over the past seven months, which saw a reduction of 1.75 basis points, bringing the rate down to 3.25% on December 11.
With the potential for even more favorable financing options in 2025, experts predict that the housing market will remain as active as it was in 2024. A new announcement from the Bank of Canada is anticipated at the end of the month, specifically on January 29.
In 2024, property prices across all categories rose by 8.6% year-over-year, as reported by Royal LePage. The city of Quebec recorded the highest price increase in the province, followed closely by Trois-Rivières and Sherbrooke.
In the fourth quarter of 2024, the median price of a property in Quebec was listed at $400,600, reflecting an 11.3% increase compared to the same period in 2023. At the end of 2024, the median price for a condo was $293,400, while detached single-family homes reached a median price of $428,300.
2025 Price Predictions for Single-Family Homes and Condos
Here’s a breakdown of the projected price variations for different regions in 2025:
Region | Q4 2024 ($) | Q4 2025 Forecast ($) | Variation Q4 2025/Q4 2024 (%) |
---|---|---|---|
Greater Montreal | $613,300 | $653,165 | 6.5% |
Quebec | $400,600 | $444,666 | 11% |
Sherbrooke | $374,300 | $400,501 | 7% |
Gatineau | $444,900 | $471,594 | 6% |
Trois-Rivières | $362,900 | $377,416 | 4% |
Province | $560,500 | $599,735 | 7% |
Source: Royal LePage