Home prices could go up by 7% in Quebec

A real estate sign is posted outside a home in Pointe-Claire, a city in Montreal's West Island, Tuesday, May 7, 2024. (THE CANADIAN PRESS/Christinne Muschi)

The residential real estate market is expected to remain strong in Quebec next year, according to Royal LePage’s forecasts released on Tuesday.

The real estate agency predicts that residential property prices could increase by seven per cent in the province in 2026.

The anticipated hike varies by region and property type, pointing to a general increase across Quebec, said Dominic St-Pierre, executive vice-president of business development at Royal LePage.

“The market will continue to be fairly robust,” he said. “There will be a slight slowdown in the acceleration, so we won’t see price growth equal to what we saw this year, but prices will continue to rise. Sales will continue to be strong.”

The market steadied slightly in November, though sales inventories increased, St-Pierre said.

“We expect the markets to ease a little, but remain largely in the seller’s favour,” he noted.

Demand remains strong relative to the supply of housing, he added, speculating that macroeconomic uncertainty does not seem to have cooled activity in the market.

The study also finds that Quebec stands out from other Canadian markets where prices are falling, notably Toronto and Vancouver.

“It’s true that property prices in Toronto and Vancouver are much higher than in Montreal, and even more so than in Quebec City,” explains St-Pierre. “This is probably one of the factors that has led people to continue to believe that investing in real estate is a good idea in Quebec.”

In Quebec City, Royal LePage predicts that the price of detached single-family homes could jump 14 per cent in 2026 to $537,000.

“This is proof of the appeal of the quality of life in a city like Quebec City,” said St-Pierre. “The economy is doing very well in Quebec City.”

The market is less buoyant in the Greater Montreal area, but the situation still compares favourably with other Canadian cities.

The agency says it anticipates a six per cent increase for single-family homes in the metropolitan area, to $800,000.

On the island, St-Pierre says he sees a balanced market as teleworking has eased pressure in allowing workers to live farther away from their offices.

St-Pierre says he does not believe that there will be any mortgage rate cuts next year, which would reduce monthly payments for first-time buyers.

“It’s not a good strategy to wait and hope that prices will go down or that affordability will improve in the coming year,” he said.

– This report by The Canadian Press was first published in French on Dec. 9, 2024.