Quebec’s real estate markets buck national trends, with annual price growth
While the greater regions of Toronto and Vancouver are posting declines, Quebec’s major markets are seeing widespread annual gains
Second quarter highlights:
- In the second quarter of 2025, the weighted median price of a property in the province of Quebec increased 5.4% compared to the same period in 2024.
- The median price of a single-family detached home in the province rose 7.0% year over year, while that of condominiums increased 3.6%.
- Quebec City continues to dominate aggregate home price appreciation, posting a 13.5% increase in the second quarter compared to Q2 2024; the strongest growth nationally and provincially for a fifth consecutive quarter.
- Markets such as Trois-Rivières and Saint-Jean-sur-Richelieu recorded annual aggregate home price increases of more than 11%, and Sherbrooke more than 5%, underscoring the continued strength of the provincial property market.
- In Q2 2025, the aggregate price of a home dipped slightly over Q1 in the Greater Montreal Area (-0.8%) and in Sherbrooke (-1.1%), while continuing to rise in the other Quebec markets.
MONTREAL, Quebec, July 15, 2025 – According to the latest results of the Royal LePage® House Price Survey and Market Forecast released today, Quebec’s real estate market showed remarkable resilience and strength in the second quarter of 2025, setting itself apart from the trends displayed elsewhere in the country. This performance is all the more noteworthy given that it is taking place during a time of economic uncertainty, due in particular to the ongoing tariff dispute with the United States.
While some slowdowns might have been anticipated, the Quebec residential market has shown continued strength. The hesitation seen among some buyers has not led to any significant decline in sales or prices.
“The persistent strength of the Quebec real estate market in the second quarter is a testament to the robustness of its economic foundations and the adaptability of consumers. The Quebec market is behaving very differently from British Columbia and Ontario, asserting itself as a key player in the national real estate dynamic,” said Dominic St-Pierre, senior vice-president of business development, Royal LePage.
“Despite some caution on the part of some households, demand remained strong, as evidenced by price increases in most markets across the province. Although signs of an economic slowdown may be appearing – such as the downturn in the stock market or job losses in certain sectors – the Quebec real estate market has managed to stay on course. Buying a property remains a long-term investment, and we see that fundamental housing needs continue to support the market, even in a more uncertain environment.”
According to the latest data from Canada Mortgage and Housing Corporation (CMHC), published in July 2025, the rate of mortgage arrears in the province of Quebec was 0.19% in the first quarter of 2025, below the national average of 0.23% and well below the ten-year average.[1] In fact, the province of Quebec reports the second-lowest default rate in Canada, just behind British Columbia. Furthermore, the CMHC reports that Montreal has the highest housing deficit among major cities in Canada, noting that the construction of nearly 49,000 additional units per year would be needed to meet the demand projected by 2035.[2]
In the second quarter of 2025, the weighted median[3] price of a home in the province rose 5.4% compared with the same period in 2024 to $611,500, an increase of 2.2% on a quarterly basis. Broken out by property type, the median price of a single-family detached home in the province rose 7.0% year over year to $690,100. For condominiums, the median price rose 3.6% year over year to $472,300.
Across Canada, the aggregate[4] price of a home rose a modest 0.3% year over year in the second quarter of 2025, reaching $826,400. Looking at the country’s largest urban centres: the aggregate price of a home in the Greater Montreal Area rose 3.5% year over year, while the Toronto and Vancouver markets recorded decreases of 3.0% and 2.6%, respectively.
Key lending rate maintained in April and June; momentum from previous cuts persists
Despite the uncertain economic and political environment, the Bank of Canada’s two consecutive cuts to the overnight lending rate, in January and March, brought many sidelined buyers back to the market. The impact of these cuts was felt throughout the second quarter, despite two consecutive rate holds in April and June. This renewed demand put upward pressure on prices, as supply remained limited across the province.
“The rate cuts in January and March acted as a catalyst for many buyers who had temporarily left the market because of high borrowing costs. Although the Bank of Canada maintained its key rate at 2.75% on April 16 and June 4, the advantage was enough to reopen the door to home ownership for some and to revive interest for others, helping to sustain strong demand in the second quarter,” said St-Pierre.
Forecast
Royal LePage has revised upwards its forecast for the province of Quebec’s residential real estate market in 2025. The company is now forecasting an 8.0% increase in the aggregate price of a home in the province in the fourth quarter of 2025 compared to the same period in 2024, to $635,472. This is attributed in particular to an increased growth forecast for Quebec City (up to 15.0%). Royal LePage believes that the combination of demand outstripping supply and a more favourable interest rate environment will continue to drive prices higher, despite economic instability.
“With its diversified economy, Quebec is well positioned to weather economic uncertainties. Royal LePage predicts that real estate prices in the province will continue to rise for the rest of the year. Sustained demand and limited supply, combined with fundamental housing needs, will continue to support Quebec’s residential market,” concluded St-Pierre.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q2-2025-QC
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2025-QC
REGIONAL SUMMARIES
Greater Montreal Area
Market stabilizes as inventory grows
Following a particularly active start to 2025, the Greater Montreal Area’s real estate market experienced a slight moderation in the second quarter. The aggregate price of a home in the region settled at $620,100, representing a modest quarter-over-quarter decline of 0.8%, but a 3.5% increase compared to the same period in 2024. Median prices for single-family detached homes and condominiums showed mixed trends: the median price of a detached home rose 0.6% quarter over quarter to $719,900, up 5.7% year over year, while condominiums posted a quarterly decline of 2.1%, settling at $480,200, yet remained 3.1% higher than in the second quarter of last year.
According to Marc Lefrançois, real estate broker, Royal LePage Tendance, this moderation coincides with a shift in market sentiment. “While sales activity continued through the second quarter, we’ve observed a slowdown over the past month, which may be an early sign of a changing tone in the market. A notable increase in active listings over the past two months is a key factor to watch,” he said.
Lefrançois notes that the rise in inventory is especially welcome news for buyers. “Inventory levels, particularly in the luxury segment, are the highest we’ve seen since 2016. This gives buyers more options and reduces the pressure to compromise or enter into multiple-offer scenarios – a healthy development for the market.” He adds that the luxury segment has seen a clear slowdown, as buyers become more risk-averse in the current economic climate. For first-time buyers, “the increase in inventory is a major positive. It gives them more choice and a better chance of finding a property that truly fits their needs, without the excessive pressure we’ve seen in recent months.”
While the Bank of Canada held its key lending rate at 2.75% in the second quarter, speculation about future cuts could influence market behaviour. “Another rate cut could help support the market, particularly by encouraging new residential construction – something Quebec urgently needs to meet growing demand,” said Lefrançois. “We simply don’t have enough housing to accommodate the population. With more inventory, we may be returning to a more balanced market, which would benefit all parties.”
Despite economic uncertainty, demand remains strong – particularly for more affordable homes. “First-time buyers, even in the face of economic headwinds, are still active. Buyer interest remains strong in the Montreal area, which is encouraging,” Lefrançois added.
Looking ahead, Lefrançois anticipates a “gradual calming of the market” in Montreal as inventory continues to rise. “We’ll be watching economic indicators closely this fall, but I expect modest price increases by year-end.”
Royal LePage is maintaining the forecast issued last December, which anticipates a 6.5% year-over-year increase in the aggregate price of a home in the Greater Montreal Area in the fourth quarter of 2025, to $653,165.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q2-2025-QC
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2025-QC
Quebec City
Quebec City’s housing market maintains momentum and leads the country in price growth
In Quebec City, growth shows no signs of slowing. The aggregate price of a home reached $439,100 in the second quarter of 2025, up 13.5% compared to the same quarter in 2024 and up 2.3% on a quarterly basis. The median price of a single-family detached home jumped 15.5% year over year to $468,100, while the median price of a condominium rose 13.1% over the same period to $328,200.
According to Michèle Fournier, vice-president and real estate broker, Royal LePage Inter-Québec, the continued and sustained price growth is no surprise and reflects current market conditions. “This is a trend we’ve been seeing for several quarters now, directly tied to a persistent lack of inventory. Demand continues to far outstrip supply, supporting price gains across all property segments,” she said.
The most pressing issue remains the severe shortage of inventory, particularly in the single-family segment. “We’ve been facing this inventory shortfall for several quarters. With a significant lack of single-family homes, buyers are increasingly turning to condominiums as an entry point to home ownership, which is also pushing up prices in that segment,” explained Fournier.
A key factor contributing to this shortage – especially of entry-level single-family homes – is that established homeowners are choosing to stay in their properties longer. “What we anticipated 20 years ago – that seniors would transition into condos – hasn’t materialized. As a result, fewer desirable homes are being freed up for first-time buyers,” she noted. In response, many buyers searching for single-family homes or properties with outdoor space are turning to the suburbs, where prices have also risen sharply. “If they want a house, they often have no choice. But even in the suburbs, prices have increased significantly in recent years,” added Fournier.
For both buyers and sellers, preparation is key. “For sellers, the more updated and move-in-ready a home is, the faster it will sell. For buyers, it’s crucial to be financially prepared – that means having a full mortgage pre-approval, not just an online estimate. A seller will often accept a slightly lower offer if it comes with solid financing,” she said.
Fournier noted that, unlike other regions, Quebec City’s market is not experiencing any slowdown at all. “Homes listed under $500,000 are selling within days, and often receive multiple offers.”
Given the ongoing strength of the Quebec City market, Royal LePage has revised its year-end forecast upward. The aggregate price of a home in the region is now expected to rise 15.0% year over year in the fourth quarter of 2025, compared to the same period in 2024, to reach $460,690.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q2-2025-QC
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2025-QC
Gatineau
Market remains active despite ongoing uncertainty
In the Gatineau region, the aggregate price of a home continued to rise in the second quarter of 2025, reaching $465,200, an increase of 2.4% year over year and 1.7% quarter over quarter. The median price of a single-family detached home rose 5.6% year over year to $583,000, while the median price of a condominium declined modestly by 0.9% during the same period to reach $334,700.
Martin Simard, chartered real estate broker with the Sirois Simard Team, Royal LePage Vallée de l’Outaouais, attributes the market’s dynamics to a ‘delayed spring’. “It’s as if spring arrived in May instead of February or March this year. Buyers entered the market later, which pushed prices higher in the second quarter,” he said, noting that well-positioned properties, particularly those listed under $600,000, continue to attract strong interest and often multiple offers.
The Bank of Canada’s decision to hold its key interest rate steady has helped reinforce buyer confidence – a key factor, according to Simard. “The impact of earlier rate cuts has already been felt. People are feeling reassured, especially with the expectation that rates will either hold or decline further,” he noted.
Simard anticipates fairly strong market activity in the coming months. “I believe demand will remain solid,” he said, projecting a robust third quarter followed by some stabilization in the fourth. A major contributor to upward price pressure is the ongoing shortage of homes for sale. “Inventory levels remain very low,” he added. New home construction is nearly absent in the region, and while many rental housing projects are underway, they don’t quite meet the needs of clients in terms of price point or housing type – pushing more people toward the resale market.
In this environment, preparation is more important than ever. For sellers, Simard emphasizes the importance of accurate pricing. “Homes listed at fair market value generate significant activity,” he advised. For buyers, his guidance is clear: “Don’t wait, because we’re seeing prices rise month over month and quarter over quarter.”
Royal LePage is forecasting the aggregate price of a home in the Gatineau region will increase 6.0% year over year in the fourth quarter of 2025, to reach $471,594.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q2-2025-QC
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2025-QC
Sherbrooke
Price stability takes hold in an active market
In Sherbrooke, the aggregate price of a home reached $391,200 in the second quarter of 2025, marking a slight decrease of 1.1% compared to the first quarter of the year. On an annual basis, however, this represents a 5.2% increase over the second quarter of 2024. Meanwhile, the median price of a single-family detached home sat at $435,800, down a modest 0.3% quarter over quarter, yet up 7.0% year over year.
“Sherbrooke’s real estate market remains very active, despite recording a minor price adjustment in the second quarter,” said Jean-François Bérubé, chartered real estate broker, Royal LePage Évolution EB. “We’re seeing prices stabilize, which is a very positive sign. Buyers are still showing up, and demand remains strong, particularly for properties priced near the median, where multiple-offer scenarios are still common.”
Bérubé added: “The message is clear: the market is stable and steadily advancing. There’s no better time to sell, and for buyers, now is the time to act.”
He noted that concerns over U.S. trade policy are no longer weighing on the local market. “Buyers don’t seem to be deterred by these uncertainties, and market strength is undeniable. For homes priced under $500,000, multiple offers are the norm – a clear indication of continued strong demand.”
However, Bérubé pointed out a persistent imbalance between supply and demand, particularly due to the nature of new construction. “We’re not seeing many new single-family home developments, and most new builds tend to be higher-end properties, which don’t necessarily meet the need for affordable housing.”
Royal LePage is maintaining its forecast, predicting that the aggregate price of a home in the Sherbrooke region will increase 9.5% year over year in the fourth quarter of 2025, to reach $409,859.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q2-2025-QC
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2025-QC
Trois-Rivières
Residential market remains strong despite slight decline in detached home prices
In Trois-Rivières, the aggregate price of a home continued to rise in the second quarter of 2025, reaching $384,200, an increase of 1.2% quarter over quarter and 11.3% year over year. The median price of a single-family detached home settled at $425,300, reflecting a slight decrease of 1.7% over the first quarter, but still up a notable 14.2% compared to the same period last year.
While Trois-Rivières’ housing market remains active, signs of adjustment revealed themselves in the second quarter. Sales volumes continued to rise significantly year over year, but the number of property visits declined, indicating a shift in buyer behaviour.
“Although homes are still selling quickly, we’re seeing fewer visits per property,” said Martin Leblanc, real estate broker, Royal LePage Centre. “This is partly due to increased caution from buyers amid economic uncertainty, and the postponement of some purchase plans. Bidding wars are less common than before, but they haven’t disappeared entirely. The market is less exuberant than it was at the beginning of the year, but it remains very active.”
The Trois-Rivières market continues to adapt to evolving economic conditions. Buyers are increasingly willing to compromise, purchasing homes that may require renovations or that don’t immediately meet their aesthetic preferences, with the intention of improving them over time. “New buyers are ready to make offers on homes that aren’t perfect, knowing that competition is still strong,” added Leblanc. “They’re more open to submitting multiple offers before landing the right property.” He emphasized the importance of staying alert and working closely with a broker, as the right home can appear suddenly – making traditional house hunting increasingly difficult.
Royal LePage is forecasting the aggregate price of a home in the Trois-Rivières region will increase 9.0% year over year in the fourth quarter of 2025, to reach $395,561.
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q2-2025-QC
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2025-QC
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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.
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[1] Mortgage Delinquency Rate: Canada, Provinces and CMAs, CMHC, July 9, 2025
[2] Canada’s housing supply shortages: moving to a new framework, CMHC, June 2025
[3] The provincial weighted median prices are based on a model using sales in each region
[4] 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.
