Property prices in Greater Montreal and Quebec City are expected to rise significantly by 2025, with detached homes projected to increase by 7.5% and condominiums by 6%. In contrast, the Greater Toronto and Vancouver areas will see smaller gains. A shift in buyer preferences post-pandemic and a severe supply shortage in Quebec City are driving this growth. Despite the promising market, affordability remains a challenge for first-time buyers.
Projected Property Price Increases in Greater Montreal
According to forecasts released by Royal LePage, property prices in the Greater Montreal area and Quebec City are anticipated to rise significantly in 2025, outpacing the growth seen in Canada’s two most expensive markets. These insights were shared in a report published on Thursday.
The median price of detached single-family homes in the Montreal region is projected to increase by 7.5%, reaching approximately $750,780 by the end of 2025, compared to $698,400 in the last quarter of 2024. Meanwhile, condominiums are expected to witness a 6% uptick, bringing their median price to $507,210, up from $478,500 in the previous year.
Marc Lefrançois, a licensed real estate broker at Royal LePage Tendance, expressed optimism about the upcoming year, stating that the real estate activity in Greater Montreal looks “promising.” He noted that current economic indicators hint at a “healthy but cautious” market for 2025.
Comparative Analysis with Other Major Markets
In contrast, the Greater Toronto Area and the Greater Vancouver Area are projected to experience more modest price increases of 5% and 4%, respectively. This positions Greater Montreal and Quebec City as leaders in property value growth across Canada.
Reflecting on the 2024 real estate landscape, Lefrançois highlighted that Greater Montreal experienced “healthy growth in activity and prices” after a sluggish 2023. This resurgence was largely fueled by declining interest rates, although the growth was not uniform across the region.
Certain neighborhoods, such as Villeray, Verdun, and Longueuil, saw robust demand and rising prices, while other areas with older housing stock experienced less interest. Royal LePage’s data indicates a rebalancing in supply and demand, particularly in the luxury and upgrade segments of the market.
Additionally, Lefrançois noted a “paradigm shift” in buyer preferences post-pandemic, with many individuals returning to urban areas after an initial trend of relocating to rural regions for remote work flexibility. However, the challenge of affordability continues to hinder first-time buyers, forcing some to look beyond the island in search of budget-friendly options.
Significant Gains in Quebec City
In the Quebec City area, property prices are forecasted to rise the most among major regions, with the median price of detached single-family homes expected to surge by 12% to $476,896. Condominiums are also set for a 7% increase, reaching $315,222.
Michèle Fournier, vice-president and real estate broker at Royal LePage Inter-Québec, explained that the Quebec City market is characterized by a severe supply shortage that fails to meet the rising demand across all property types. This inventory imbalance is likely to persist into the next year, contributing to ongoing property value increases.