Quebec housing market update: Quebec continues its robust growth and strong momentum in the Canadian real estate market
Contrary to price declines recorded in other Canadian provinces, Quebec remains on a growth path, driven by sustained demand and more favourable borrowing rates
Third quarter highlights:
- In the third quarter, the Greater Montreal Area’s real estate market posted notable growth, with a 4.9% year-over-year increase in the aggregate price of a home. This performance contrasts with the declines recorded in the Greater Toronto Area (-3.5%) and Greater Vancouver (-3.1%).
- Quebec City continues to stand out in terms of aggregate price appreciation, posting an impressive 16.5% increase in the third quarter compared to Q3 2024, confirming its position as the national leader in price growth for a sixth consecutive quarter.
- The real estate markets of Sherbrooke and Trois-Rivières recorded notable year-over-year gains, with the aggregate price increasing 4.6% and 7.0%, respectively, in Q3 of 2025. Meanwhile, prices rose a more modest 1.2% in Gatineau.
MONTREAL, Quebec, October 15, 2025 – According to the latest results of the Royal LePage® House Price Survey and Market Forecast released today, Quebec’s real estate market continued to show remarkable vitality in the third quarter of 2025. Price strength has been maintained despite an uncertain economic environment, marked in particular by international trade tensions. This performance is all the more remarkable given that prices in Quebec’s major regions are beginning to catch up to those in other Canadian cities.
Despite forecasts of a slowdown, the Quebec residential market continues to show unwavering strength. The caution shown by some buyers has not led to any major declines in transactions or real estate values in most regions.
“The remarkable performance of Quebec’s real estate markets in the third quarter attests to the strength of its economic foundations. The Greater Montreal Area market, although less buoyant than the rest of the province in terms of sales growth, remains stable and favourable for sellers. We are seeing particularly strong momentum in Quebec City, where prices continue to climb rapidly and where inventory, which is nearly four times lower than pre-pandemic levels, has been quickly absorbed by strong demand. The province of Quebec is performing very differently than British Columbia and Ontario, establishing itself as a key player in the national real estate landscape. However, it should be noted that Montreal and Quebec City are beginning to catch up to the price levels of some of Canada’s major metropolitan areas, which is not always good news for affordability,” said Dominic St-Pierre, senior vice president of business development, Royal LePage.
“Despite some caution among households, demand remained strong, as evidenced by annual price increases in most markets across the province. The purchase of a property remains a desirable long-term investment project, and we are seeing that basic housing needs continue to support the market, even in a more uncertain environment. It should be noted that in some markets, a historic surplus of condominiums was quickly absorbed by strong demand, contributing to price increases in this segment.”
Home ownership remains an important goal for Quebecers. According to a recent Royal LePage survey, conducted by Burson[1], 12% of adults in the province say they are actively working toward purchasing their first home within the next two years. Less than one-third of them (29%) say they will receive financial assistance from family members for their down payment. This is the lowest instance among the provinces, and well below the national average (41%).
Across Canada, the aggregate[2] price of a home rose modestly by 0.1% year over year in the third quarter of 2025, reaching $816,500. Among the country’s major markets, the aggregate price of a home in the greater regions of Toronto and Vancouver recorded declines of 3.5% and 3.1% respectively, illustrating a clear divergence in trends.
Key interest rate cut in September: an expected boost for the real estate market
In its announcement on September 17th, the Bank of Canada cut its key interest rate by 25 basis points to 2.5%.[3] This is the first rate cut since March. The decision comes as inflation remains close to the Bank’s 2% target and the economy is weakening with an unpredictable labour market. The cumulative effect of these cuts has helped stimulate the market, reviving buyer confidence and putting upward pressure on prices in most regions, due to continued limited supply.
“The rate cuts in January and March had already boosted interest among many buyers. After maintaining the overnight lending rate for several months, the Bank of Canada decided to lower it by 25 basis points in September. Inflation remains within the target range, but reported weakness in employment in August justified further rate easing,” said St-Pierre. “This decision demonstrates a clear commitment to keeping the economy on track. For real estate, lower borrowing costs could further boost activity this fall. Even though buyers weren’t waiting for this rate cut, any measure that makes housing more affordable will inevitably stimulate demand, which is already fundamentally strong.
“With its diversified economy, Quebec is well positioned to navigate economic uncertainties. Royal LePage anticipates that real estate prices across the province will continue to rise for the rest of the year. Sustained demand and limited supply, combined with fundamental housing needs, will remain the pillars of the Quebec residential market. However, special attention must be paid to the specific dynamics of each segment, particularly condominiums,” concluded St-Pierre.
Royal LePage House Price Survey Chart:rlp.ca/house-prices-Q3-2025-QC
Royal LePage Forecast Chart:rlp.ca/market-forecast-Q3-2025-QC
REGIONAL SUMMARIES
Greater Montreal Area
A recovering market with high inventory, favourable for buyers
After a particularly dynamic start to 2025 and a slight slowdown in the second quarter, the Greater Montreal Area real estate market showed signs of recovery in the third quarter. The aggregate price of a home stood at $635,000, representing a quarterly increase of 2.4% compared to the second quarter of 2025, and an annual increase of 4.9%. The median prices of a single-family detached home and a condominium showed contrasting dynamics. Detached homes rose 3.5% quarter over quarter to $745,100, representing an increase of 7.8% compared to the third quarter of 2024. Condominium prices rose 1.6% quarter over quarter to $487,900, while remaining up 4.3% compared to the same period last year.
According to Marc Lefrançois, real estate broker, Royal LePage Tendance, the third quarter was marked by interesting momentum, notably a resurgence of demand on the island of Montreal. “The figures reflect a reality where the island of Montreal is beginning to perform better, which could be explained by the gradual return to the office and a renewed appeal for the city centre,” he explains. This period is also characterized by a notable increase in overall inventory on the market.
This increase in inventory creates a particularly favourable environment for buyers. “We are seeing a net increase in visits and many new buyers entering the market. However, given the wide choice available, they are less eager to finalize a deal,” notes Lefrançois. He adds that the current period is “the best time to buy in five years.” With interest rates falling and inventory doubling compared to the pre-pandemic period, buyers have unprecedented choice, reducing the need for costly compromises. In addition, the end of the year is often a time when buyers’ bargaining power is increased.
Some segments of the market are experiencing more complex dynamics. “Condominiums continue to face challenges, particularly on the island of Montreal, where inventory is very high in neighbourhoods such as Griffintown and Île-des-Sœurs, following extensive construction in recent years,” explains Lefrançois. The luxury market is also experiencing difficulties, particularly in areas such as the West Island, where sellers are struggling to reach their asking price ambitions, despite existing demand. Conversely, properties priced below $600,000 continue to perform very well, reflecting sustained demand in this segment.
The Bank of Canada’s decision to lower its key interest rate to 2.5% in the third quarter led to a shift in buyer sentiment. “Apprehension about interest rates seems to have dissipated. After significant declines and the anticipation of further reductions, the message is clear: lending rates are no longer a major obstacle for buyers. The general sentiment is positive, and those who had left the market due to economic uncertainty are gradually returning,” explains Lefrançois. He adds that stock market performance, which has a direct impact on the purchasing power of luxury property buyers, is also contributing to this renewed confidence.
Toward the end of the year, Lefrançois anticipates an acceleration in sales. “The effect of buyers’ patience, fuelled by high inventory, should begin to wane as the holidays approach. Historically, December and January see fewer new listings, which pushes buyers to make decisions. Those who have been waiting for the perfect property will have to choose from the existing supply, which should help stimulate transactions.”
Royal LePage maintains its forecast that the aggregate price of a home in the Greater Montreal Area will increase 6.5% in the fourth quarter of 2025, compared to the same period in 2024, reaching $653,165.
Royal LePage House Price Survey Chart:rlp.ca/house-prices-Q3-2025-QC
Royal LePage Forecast Chart:rlp.ca/market-forecast-Q3-2025-QC
Quebec City
The undisputed leader in property price growth
In Quebec City, growth remains strong. The aggregate price of a home reached $452,700 in the third quarter of 2025, an increase of 16.5% compared to the same quarter in 2024, and up 3.1% quarter over quarter. The median price of a single-family detached home jumped 16.2% year over year to $480,300 in Q3 2025, while the median price of a condominium rose 14.2% during the same period to $332,500.
According to Michèle Fournier, vice-president and real estate broker, Royal LePage Inter-Québec, the persistence of this price growth, while remarkable, is an accurate reflection of market realities. She points out that the inventory shortage is critical and remains the primary economic challenge.
However, Fournier notes that the market has become more nuanced. “If a home is priced fairly, bidding wars are still happening. However, buyers are increasingly reluctant to participate, and offers without inspection have become much less common,” she explains. She adds that properties listed above perceived market value tend to sit longer.
First-time buyers remain very active, especially for homes priced around $450,000. “They are motivated and eager to purchase. However, one must be realistic: to successfully buy a property in today’s market, it’s often necessary to have financial capacity above the listing price. A mortgage pre-approval with some flexibility is a major advantage,” advises Fournier.
The inventory shortage is also worsened by the fact that “seniors are staying in their homes until they absolutely have to move, freeing up properties that often require renovations,” explains Fournier. She notes that while buyers prefer turn-key properties, they’re willing to take on renovations if the home is in a desirable neighbourhood and priced accordingly.
“Quebec City is a very stable market, especially in terms of employment,” Fournier emphasizes. However, she flags public sector job cuts as a potential destabilizing factor, though she remains cautious about their true impact. “The strong demand in the market suggests that the effect of these cuts on overall balance could be limited.”
The $1 million mark, once reserved for exceptional properties, is now surpassed by homes that are “somewhat more luxurious, larger than average, or in more central neighbourhoods – without being extraordinary,” notes Fournier. “One million dollars has become a common price point.”
While interest rates can influence buyers’ borrowing power, Fournier notes that this hasn’t translated into more inventory. “Interest rate changes help people reposition themselves in the market, but they don’t create more homes for sale.”
Looking ahead to the end of 2025, Fournier does not expect a slowdown. “Growth will continue. Last year, we thought price increases would ease, but the opposite happened. I don’t foresee a pause anytime soon.”
Royal LePage is maintaining its forecast for the aggregate price of a home in Quebec City which is forecast to increase 15.0% year over year in the fourth quarter of 2025, reaching $460,690.
Royal LePage House Price Survey Chart:rlp.ca/house-prices-Q3-2025-QC
Royal LePage Forecast Chart:rlp.ca/market-forecast-Q3-2025-QC
Gatineau
A market characterized by contrasting dynamics
In Gatineau, the aggregate price of a home continued to rise in the third quarter of 2025, reaching $456,800 – an increase of 1.2% year over year, but a decrease of 1.8% quarter over quarter. The median price of a single-family detached home increased 5.5% year over year to $574,800 in Q3 2025. Meanwhile, the median price of a condominium declined by 1.8% compared to the same period last year, landing at $327,300.
Karine Séguin, chartered real estate broker, Royal LePage Vallée de l’Outaouais, notes that Gatineau’s broad and diverse market is seeing strong demand for move-in-ready properties. Today’s buyers tend to prioritize homes that don’t require major renovations, making it more difficult to sell homes that feel outdated. Additionally, new construction is primarily geared toward rental housing, limiting the supply of new homes available for purchase. While multiple-offer scenarios are now less common, they still occur in particularly sought-after areas.
The Bank of Canada’s interest rate cut has reignited buyer interest following a quieter September. However, consumer sentiment remains cautious: “They’re ready, but still hesitant,” she explains, influenced by broader economic uncertainty and the hope that more inventory will become available.
Looking ahead to 2026, Séguin anticipates a rebalancing of the housing market. She expects that “the market will gradually move toward balance, shifting away from a seller’s market over the coming year.” This shift is largely driven by an increase in listings from homeowners aged 60 and older who are opting to sell and rent instead. At the same time, demand is not showing significant growth. The condo segment – already seeing price declines – is often an early indicator of this type of market evolution.
Given this context, Séguin encourages sellers to prepare their homes thoroughly before listing, including taking summer-season photos and ensuring they have an up-to-date certificate of location. “Buyers are willing to pay a premium if the home is renovated. If not, they become much more price sensitive,” she notes. “For buyers, it’s important to research the neighbourhood carefully and not overlook what matters most to them.”
The aggregate price of a home in the Gatineau region is expected to rise 4.0% year over year in the fourth quarter of 2025, reaching $462,696. Due to current market conditions, Royal LePage has revised its previous forecast modestly downward.
Royal LePage House Price Survey Chart:rlp.ca/house-prices-Q3-2025-QC
Royal LePage Forecast Chart:rlp.ca/market-forecast-Q3-2025-QC
Sherbrooke
Buyer confidence supports steady rising growth
In Sherbrooke, the aggregate price of a home reached $393,500 in the third quarter of 2025, marking a slight increase of 0.6% compared to the second quarter of 2025. However, on a year-over-year basis, this price represents a more significant 4.6% increase compared to the third quarter of 2024. Meanwhile, the median price of a single-family detached home stood at $439,300 in the third quarter of 2025, up 0.8% compared to the previous quarter, and a notable increase of 6.6% year over year.
Jean-François Bérubé, chartered real estate broker, Royal LePage Évolution EB, confirms that the Sherbrooke market had a positive third quarter and anticipates this trend will continue through the end of the year.
“The market is demonstrating great resilience. We’re seeing a continued decline in inventory, and the drop in the key interest rate is helping to sustain strong activity,” explains Bérubé.
“Buyer confidence is present, which is a very good sign. While quarterly growth is modest, we see no signs of a slowdown. On the contrary, we anticipate a slight increase in prices for the final quarter, reinforcing the annual trend,” he added.
“For the end of 2025, we expect the market to maintain its positive momentum, which should result in annual price appreciation, still driven by declining inventory.”
The aggregate price of a home in the Sherbrooke region is expected to increase 7.0% in the fourth quarter of 2025, compared to the same quarter last year, reaching $400,501. Current market conditions have led Royal LePage to revise its previous forecast modestly downward.
Royal LePage House Price Survey Chart:rlp.ca/house-prices-Q3-2025-QC
Royal LePage Forecast Chart:rlp.ca/market-forecast-Q3-2025-QC
Trois-Rivières
Strong annual growth despite a quarterly adjustment
In Trois-Rivières, the aggregate price of a home reached $378,400 in the third quarter of 2025, representing a decrease of 1.5% compared to the previous quarter, but a notable year-over-year increase of 7.0%. The median price of a single-family detached home stood at $415,100 in Q3 2025, down 2.4% from Q2, but recording a significant 9.7% increase compared to the same period last year.
The real estate market in Trois-Rivières remains very strong and is clearly a seller’s market. Despite the summer’s momentum, a slight drop in transactions and viewings reflects increased caution among buyers. Still, days on market continue to shorten, and multiple-offer scenarios – though less intense – are still occurring. Martin Leblanc, real estate broker, Royal LePage Centre, confirms this trend: “The market is doing very well. Median prices remain significantly higher on an annual basis, and we are still in a seller’s market. Buyers are more cautious, which translates to fewer viewings per property, but homes are still selling quickly.”
Despite the Bank of Canada’s key interest rate cut in September, the effects have not yet been fully felt, and buyers appear to have adjusted to the current rate environment. The favourable economic outlook in Trois-Rivières – particularly with infrastructure projects like the battery supply industry – is continuing to drive growing interest in the region. Even though some projects may undergo adjustments, the large developments already completed offer future growth opportunities, potentially attracting new families. Buyers, while cautious, are willing to make compromises, including purchasing homes in need of renovation if they meet their core needs.
Leblanc adds: “Buyers know the market is competitive and are willing to make offers on properties that aren’t perfect. They’re buying out of necessity or with a long-term value mindset. It’s now essential for them to stay alert and work closely with their broker, because the ideal opportunity can arise at any time, making the search for specific properties nearly impossible.”
Looking ahead to the end of 2025, Leblanc expects the market to continue its momentum and maintain a stable trajectory. Royal LePage forecasts that the aggregate price of a home in Trois-Rivières will increase by 9.0% year over year in the fourth quarter of 2025, reaching $395,561.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q3-2025-QC
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q3-2025-QC
About the Royal LePage House Price Survey
The Royal LePage House Price Survey provides information on the most common types of housing, nationally and in 64 of the nation’s largest real estate markets. Housing values in the Royal LePage House Price Survey are based on the Royal LePage Canadian Real Estate Market Composite, produced quarterly through the use of company data in addition to data and analytics from partner company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Additionally, commentary on housing market trends and data on price and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage® Shelter Foundation™, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for more than 25 years. Royal LePage is a Bridgemarq Real Estate Services® company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.
Royal LePage® is a registered trademark of Royal Bank of Canada and is used under licence by Bridgemarq Real Estate Services®.
For further information, please contact:
Appolline Risacher
Burson on behalf of Royal LePage
appolline.risacher@bursonglobal.com
418-559-8930
[1] Canada’s housing market is ripe with possibility, but new buyer hopefuls are taking their time, September 25, 2025
[2] Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions and includes both resale and new build.
[3] Bank of Canada drops overnight lending rate to 2.5% as economy shows signs of slowing, September 17, 2025
