What to Expect in 2025: A Look Back at 2024, and Ahead
As 2025 begins, let’s take a look back at 2024—the wins, the lessons, and what’s on the horizon for this new year. Spoiler alert: There’s a lot to be excited about if you’re following the real estate market in Québec!
The Economy Takes the Spotlight
One of the biggest wins of 2024: The Canadian economy got inflation under control, with numbers landing below the target rate of 2%. This stands in sharp contrast to our neighbours to the South, who are still grappling with runaway inflation.
As a result: Interest rates in Canada dropped significantly toward the end of 2024—a trend experts predict will continue into 2025.
These rate drops sparked a surge in transactions in the fall, with October and November seeing over 40% more sales than the same months in 2023. This contributed to a remarkable 19% year-over-year increase in total sales for Québec, jumping from 75,000 transactions in 2023 to over 90,000 in 2024, a whopping 15,000 additional transactions!
What’s Driving Demand?
2024 revealed some interesting buyer trends.
The rise of remote work continues to fuel demand for properties just outside major cities.
According to Jean-Philippe Meloche, a professor of architecture and urban studies at the Université de Montréal, buyers are gravitating toward areas close enough for the occasional commute but far enough to enjoy larger homes, more amenities, and better value for their money.
Additionally, with new construction lagging, and Québec’s population growing rapidly, experts expect resale properties to remain in high demand.
For 2025, prices are projected to increase across the board, with condo values rising by 6% to 7%, and similar growth anticipated for single-family homes.
Challenges on the Horizon
Of course, it’s not all smooth sailing.
One key source of uncertainty in 2025 is the ongoing trade negotiations with the U.S., specifically around tariffs. If blanket tariffs are imposed, Canada’s GDP could take a hit of up to 6%, potentially leading to a recession.
That said, there’s good news for Québec: Our economy is one of the most diversified in the world, meaning we’re better positioned than other provinces to weather economic turbulence. On top of that, this could be a perfect opportunity for Canadians to address interprovincial trade barriers. Eliminating these barriers could boost Canada’s GDP by 4%, making us stronger together.
2025: A Bright Horizon
Despite some uncertainties, the foundation is set for another strong year in real estate.
A robust economy, steady demand, and limited inventory, all point to continued price growth and market activity.
As always, my team and I are here to guide you through every step of your real estate journey. Whether it’s finding your dream home, selling your current property, or navigating the ever-changing market, count on us..
Here’s to a successful, exciting, and prosperous 2025!