Review of the 2025 Quebec real estate market

More dynamic than expected!

With more than 97,200 transactions, up nearly 8% compared with 2024, last year stood out as the third most active since 2000 and the strongest year outside the pandemic period. This performance does not indicate a market free of constraints but rather a strongly imbalanced one where limited supply continued to cap potential activity.

This review of residential market data will help us better understand the key dynamics that shaped 2025, and what these trends mean for 2026.

Rising residential sales in an uncertain environment

A closer look at 2025 reveals a key trend: demand significantly exceeded available supply.

The year began on a strong note, continuing the rebound observed at the end of 2024. However, as macroeconomic uncertainties persisted and financial conditions remained challenging, the lack of properties for sale became the market’s main limiting factor, preventing it from maintaining the same pace toward the end of the year.

There are several factors that explain the strength of demand:

• Strong demographic growth in recent years.
• A latent demand from households that had delayed their purchasing plans.
• The dominance of repeat buyers, less sensitive to high price levels and generally better equipped to cope with economic uncertainty.

However, supply failed to keep pace. Across the province, the number of properties for sale remained well below historical averages, thus maintaining seller‑friendly conditions in most markets.

Interest rates: a supporting factor in an uncertain environment

In 2025’s economic environment, where caution remained the order of the day, mortgage interest rates continued to play a central role in household decision-making. Downward adjustments in monetary policy and the option of amortizing insured mortgages over 30 years, combined with uncertainties related to the global economy, encouraged buyers to adopt a more confident, but also more thoughtful and well‑planned, approach.

Beyond activating a significant amount of latent demand (2025 Quebec household buying and selling intentions), interest rates contributed to:

• A more strategic approach on the part of buyers.
• Adjustments to home buying plans (property type, location, down payment).
• A renewed focus on market segments where affordability remained relatively attainable.

On the sellers’ side, the scarcity of supply allowed them to maintain an advantage throughout the year, with overbidding still frequent in many markets.

Tips and tricks When interest rates influence the market, analyzing your true borrowing capacity, factoring in a cushion in your budget, and comparing financing options helps you make informed decisions and move forward with greater peace of mind.

Three segments, three distinct dynamics

Single-family homes: as popular as ever

Single-family homes remained the most sought-after segment in 2025. Despite significant price increases, demand stayed strong across all regions.

However, this is also the segment with the most acute shortages, which limited the number of possible transactions and exacerbated affordability challenges through sharp price increases in many major urban centres and catch-up markets. Limited affordability in the single-family segment continues to restrain market activity in several regions.

Condominiums: a more nuanced dynamic

The condominium market posted more mixed results. In certain areas, particularly in Montreal, there was an increase in supply, contributing to the early stages of a market rebalancing. Elsewhere, scarcity remains very much present.

Condominiums continued to play a key role as a gateway to homeownership, although rising fees and regulatory requirements have complicated matters for some buyers. This reality aligns with the buying and selling intentions expressed by Quebec households in 2025, with condominiums continuing to hold acentral place.

Plexes: the most dynamic segment of 2025

Plexes and income properties continued to attract strong interest from buyers and small investors in 2025. In a context where rental income remains a key driver, demand for these properties showed no signs of weakening. Rents rose sharply in 2025, as reflected in the dynamics observed by the CMHC in the primary rental market.

With a 13% increase in sales, plex properties established themselves as the most vibrant segment of the year. Their popularity can be attributed to:

• Pressure in the rental market.
• The search for supplementary income.
• An alternate homeownership strategy in a context of growing unaffordability.

This sustained demand, however, ran up against an extremely limited supply, resulting in significant price increases.

Prices and days on market: the market continues to favour sellers

In 2025, prices and selling times confirmed a market imbalance:

• Prices increased across all regions, often significantly. Price growth was stronger in the eastern part of the province (Quebec City, Trois-Rivières, Saguenay, Drummondville) than the western part (Gatineau, Montreal, and Sherbrooke).
• The average number of days on market remained under 60 days, well below historical averages.
• Market conditions remained favourable—in fact, very favourable—to sellers. In other words, limited supply has given sellers the upper hand in negotiations. This market imbalance was reflected both in the number of days a property remained listed on the market and in rising prices.

Price increases were particularly pronounced in eastern Quebec markets, such as Quebec City, Trois-Rivières, Saguenay, and Drummondville, where supply shortages remain especially acute.

Tips and tricks It is not enough simply to take listing prices or average days on market into consideration. Working with a real estate broker, comparing local transactions, and taking neighbourhood realities into account enables a more accurate interpretation of the data and supports well-informed decision-making.

Contrasting regional realities

While the upward trend in sales remained strong across the province in 2025, it varied from region to region. In some urban centres, sales jumped by more than 10% year over year, while other areas posted more moderate growth, reflecting distinct local realities.

Limiting factors also varied:

• In some markets, a lack of available properties slowed sales.
• While in others, unaffordability became the main obstacle.

These regional differences have become a defining feature of the Quebec’s real estate market.

Some smaller urban areas stand out more.

What 2025 teaches us

The main takeaways from 2025 are clear:

• The market remains resilient despite a sombre economic and geopolitical environment.
• Demand continues to run up against insufficient supply, financially stressed households, and widening gaps between regions and property categories.

And for 2026: a year of transition

As we move into 2026, Quebec’s real estate market is entering a transition phase in a context of ongoing international uncertainties. While the stabilization of interest rates improves market readability, the global economic outlook calls for caution. Nonetheless, the enviable stability of Quebec’s real estate market continues to strengthen the confidence of households and investors alike. Residential real estate continues to be viewed as a relatively safe investment.

Against this backdrop, several key observations shape the outlook for the year ahead:

• A stabilization of the market, influenced by economic uncertainty and relatively stable mortgage interest rates at comparatively low levels.
• Despite slower population growth, the real estate market can still count on a strong latent demand.
• Repeat buyers will continue to dominate the market.
• Supply could improve slightly, without, however, eliminating the accumulated shortfall. This would allow latent demand to materialize into purchases.
• Prices will continue to rise, but at a much more moderate pace than in recent years.
• Prices in the Quebec City area are expected to grow faster than the provincial average due to a persistent shortage of available properties in 2026.
• In Montreal, increased supply and affordability challenges will slow price growth. In particular, the rising number of condominiums for sale should temper price growth in that category.

Conclusion: 2025 was a year of adaptive strategies

The 2025 review highlights the resilience of Quebec’s real estate market. Despite ongoing structural constraints, the market demonstrated strong performance in an unstable global environment. In this context, a nuanced understanding of local and macroeconomic dynamics remains essential to navigating a market increasingly shaped by economic, social, and geopolitical challenges.

The conditions observed in 2025 underscore the importance of evaluating each real estate project in light of one’s financial situation, objectives, and planning horizon.

Whether buying, selling, or planning your next steps, professional guidance in navigating the real estate landscape helps turn market insights into concrete, coherent actions tailored to individual needs.

Article written in collaboration with:

See also:

13 expenses to budget for when buying a home

A comprehensive 12-step guide to buying a home

Preparing for Your First Meeting With a Real Estate Broker