Montreal and Quebec’s Real Estate Market Shows Resilience and Growth**

Quebec real Estate Defies Gravity: Prices and Sales Continue to Climb

September 16, 2025

The Quebec housing market demonstrates remarkable resilience this summer, as both median prices and sales volumes continue their upward trend. Recent data indicates a robust market, particularly in Montreal and the broader Quebec region, challenging expectations given prevailing interest rates.

montreal Market Overview

The median price of a house in montreal has now reached $600,000, representing an 8% increase since August 2024. Condominium prices are mirroring this pattern,currently at $429,000,a 5% rise during the same period. Plexes, popular investment properties, have seen an even more significant jump, with the median price climbing 9% to $810,000 over the past year.

Sales activity is also gaining momentum. Transactions involving single-family homes have increased by 20% over the last 12 months, while plex sales have surged by an impressive 22%. This renewed buyer enthusiasm persists despite relatively high borrowing costs.

Quebec City Experiences Strong Growth

The Capitale-Nationale region, encompassing Quebec City, is showcasing even more pronounced growth. The median price for a single-family home now stands at $420,000, a substantial 13% increase year-over-year. Condominiums have risen by 9%, reaching $300,000, and plexes have experienced an remarkable 21% increase, now averaging $489,000.

This upswing extends to sales volumes, with a 12% increase in single-family home transactions and a 15% rise in plex sales.

Provincial Trends

Across the entire province of Quebec, the median price of a single-family home has surpassed $450,000, marking an 11% increase compared to last year. Condominium prices have increased by 6%, and plexes by 15%.

Though, analysts are observing a concerning trend: a sharp increase in legal mortgages, especially within the Quebec region. This suggests that some households are struggling to keep pace with the fast-moving market and maintain their financial obligations. The Financial Consumer Agency of Canada offers resources for managing mortgages.

Property Type	Montreal Median Price	Montreal % Change (YOY)	Quebec City Median Price	Quebec City % Change (YOY)	Provincial Median Price	Provincial % change (YOY)
Single-Family Home	$600,000	8%	$420,000	13%	$450,000	11%
Condominium	$429,000	5%	$300,000	9%	N/A	6%
Plex	$810,000	9%	$489,000	21%	N/A	15%

did You Know? The current increase in legal mortgages could signal a potential slowdown in the market if affordability continues to decline.

Pro tip: Before entering the market,it’s crucial to get pre-approved for a mortgage to understand your borrowing capacity and secure a favorable interest rate.

What factors do you believe are driving the continued surge in Quebec’s real estate market? Do you think the increase in legal mortgages is a cause for significant concern?

Understanding Quebec’s Housing Market

Quebec’s housing market is unique due to a combination of factors, including its strong economy, population growth, and limited housing supply in certain areas. The province is seeing increased migration from other parts of Canada and abroad, further fueling demand. Government policies, such as those aimed at increasing housing affordability, also play a role in shaping market dynamics.

Historically, Quebec has frequently enough experienced different trends compared to the rest of Canada, benefitting from a more stable and regulated financial landscape. However, global economic factors and changing interest rates inevitably influence the provincial market as well.

Frequently Asked Questions About Quebec Real Estate

• What is driving up real estate prices in Quebec? Increased demand, limited housing supply, and economic growth are primary factors.
• Are interest rates impacting the Quebec housing market? While high, rates haven’t significantly curbed demand, though increasing legal mortgages suggest affordability issues.
• What is a plex and why are they popular? A plex is a multi-unit residential building, popular with investors due to rental income potential.
• Is now a good time to buy in Quebec? It depends on individual circumstances and financial preparedness. Consulting with a financial advisor is recommended.
• What are legal mortgages? These are mortgages registered against a property to secure a loan, and a rise suggests increasing debt burdens among homeowners.

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How do Quebec’s economic strengths contribute to the stability of its real estate market compared to other Canadian provinces?

Quebec Housing Market Overview: A Province on the Rise

Quebec’s real estate landscape continues to demonstrate remarkable strength, defying broader economic headwinds. While national markets have experienced corrections, Quebec, and particularly Montreal, have maintained a trajectory of steady growth and resilience. This isn’t simply luck; a confluence of factors is driving this positive trend. Understanding these dynamics is crucial for both prospective homebuyers and investors navigating the Quebec real estate market.

Key Drivers of Growth in Montreal Real Estate

Several key elements are fueling the ongoing success of Montreal’s property market:

* Strong Economic Fundamentals: Quebec boasts a diversified economy with strengths in aerospace, technology, pharmaceuticals, and renewable energy. This economic stability translates into job growth and increased purchasing power for residents.

* Population Growth: Montreal is experiencing important population growth, driven by both international immigration and interprovincial migration. This influx of new residents creates consistent demand for housing.

* Relative Affordability: Compared to major Canadian cities like Toronto and Vancouver, Montreal remains relatively affordable, attracting buyers seeking value. This is a major draw for first-time homebuyers and those relocating from more expensive provinces.

* Government Initiatives: Provincial and municipal government initiatives aimed at increasing housing supply and supporting homeownership are contributing to market stability.

* Investment in Infrastructure: Ongoing investments in public transportation and infrastructure projects enhance the appeal of various Montreal neighborhoods, boosting property values.

Montreal Real Estate trends: A Deep Dive

The Montreal real estate market isn’t monolithic. Different sectors and neighborhoods are experiencing varying degrees of growth. Here’s a breakdown of current trends:

Condo Market Performance

The condo market remains a dominant force in Montreal,particularly in central areas.

* Demand Outpacing Supply: Demand for condos continues to exceed supply, leading to moderate price increases.

* Popular Neighborhoods: Downtown, Old Montreal, Plateau Mont-Royal, and mile End remain highly sought-after locations for condo buyers.

* New Developments: Numerous new condo developments are underway, but absorption rates are generally healthy, preventing a significant oversupply.

Single-Family Home Dynamics

While condos dominate, the single-family home market is also showing resilience.

* Suburban Growth: the suburbs surrounding Montreal, such as Laval, Longueuil, and the West Island, are experiencing strong demand for single-family homes, driven by families seeking more space.

* price Gratitude: Prices for single-family homes have been steadily appreciating, although at a slower pace than in previous years.

* Inventory Levels: Inventory levels remain relatively low, contributing to competitive bidding situations in desirable neighborhoods.

Rental Market Analysis

Montreal’s rental market is incredibly tight, with historically low vacancy rates.

* Vacancy Rates: Vacancy rates are consistently below 2%, making it challenging for renters to find suitable accommodations.

* Rent Increases: Rent prices have been steadily increasing, reflecting the high demand and limited supply.

* Investment Opportunities: The strong rental market presents attractive investment opportunities for landlords.

Regional Variations within Quebec

Beyond Montreal, other regions of Quebec are experiencing unique real estate dynamics:

* Quebec City: Quebec City’s real estate market is stable and growing, driven by a strong public sector and a growing tourism industry.

* Eastern Townships: The Eastern Townships continue to attract buyers seeking a rural lifestyle, with demand for cottages and country homes remaining high.

* Laurentians: The Laurentian region, known for its ski resorts and natural beauty, is experiencing increased demand for vacation properties.

* Gaspésie: Emerging as a destination for remote workers and nature enthusiasts, Gaspésie is seeing a gradual increase in property values.

Navigating Property Taxes in Montreal & Quebec

Understanding property taxes is essential for anyone considering a real estate purchase in Quebec.

* Municipal and School Taxes: Property taxes in Quebec are comprised of both municipal and school taxes.

* Assessment Rolls: The rôle d’évaluation foncière (assessment roll) determines the assessed value of a property, which is used to calculate property taxes. You can consult the roles d’évaluation foncière online through the City of Montreal website (https://montreal.ca/demarches/consulter-les-roles-devaluation-fonciere).

* tax Rates: Tax rates vary depending on the municipality.

* Property Tax Rebates: Certain homeowners may be eligible for property tax rebates.

Benefits of Investing in Quebec Real Estate

Investing in Quebec real estate offers several compelling benefits:

* Stable Growth: The Quebec market has demonstrated consistent growth and resilience, even during economic downturns.

* Strong Rental Income Potential: The tight rental market provides opportunities for generating strong rental income.

* Diversification: Quebec real estate can provide diversification for investment portfolios.

* Quality of Life: Quebec offers a high quality of life, with a vibrant culture, excellent healthcare, and a strong education system.

Practical Tips for Buyers and Sellers