Current State of the Residential Real Estate Market in Sherbrooke and the Eastern Townships in 2025

As a mortgage broker, it is essential to understand in depth the dynamics of the residential real estate market in Sherbrooke and the Eastern Townships in 2025. Here is a detailed, structured and accessible analysis to effectively support your buyer, seller and refinancing clients.

1. Price Trends

• In Sherbrooke, the average sale price increased from $478,000 to $496,000 between July 2024 and July 2025, highlighting strong market dynamics.
• According to Century 21, in February 2026, the average price in Sherbrooke reached $508,485, an increase of 6.3% compared to February 2025. The median price was $460,500 (+8.4%).
• Royal LePage already anticipated a 7% increase in the aggregate of properties in Sherbrooke by the 4th quarter of 2025, with a median price for single-family homes expected at $449,820 (+8%).
• In the 2nd quarter of 2025, the median price for single-family homes in Sherbrooke was $467,000 (+13% year-over-year), condos at $327,750 (+19%), and plexes at $505,000 (+8%).
• Finally, according to Royal LePage, the median price of $455,000 at the end of 2025 reflects an annual increase of 8.8% for the aggregate and nearly 11% for single-family homes.

2. Inventory and Time on Market

• The 2nd quarter of 2025 recorded 720 sales in the Sherbrooke CMA (+27% compared to 2024), with equivalent stock and an inventory depletion period of 3.9 months, 50% below the historical average of 8.3 months.
• In the 3rd quarter of 2025, regional inventory decreased by 6%, while sales increased by 4%, confirming a tight market.
• The APCIQ Residential Barometer indicates an average of 37 days on the market in the 2nd quarter of 2025 for single-family homes, a decrease of 13 days.
• In the high-end segment ($520,000–$650,000 and above), sales times vary between 3.8 and 9.4 months depending on price, with virtually no negotiation in February 2025.

3. Opportunities for Buyers and Sellers

For Buyers

• The market remains competitive: properties under $500,000 still generate multiple offers.
• Interest rates have seen several decreases in 2025, stimulating demand.
• An active market, but prices still more affordable than in major cities like Montreal (40–50% more expensive).
• Consider the rental segment (plexes), particularly attractive for investors, with increased sales and potential returns.

For Sellers

• Favorable conditions: seller's market, firm prices, limited negotiation, especially in winter.
• A significant increase in municipal assessments (up to +44% overall and +57.9% for single-family homes) between 2022 and 2025, reflecting notable appreciation of the housing stock.
• Setting a realistic price from the start is crucial to avoid successive reductions and preserve credibility.

4. Practical Tips for Mortgage Brokers and Clients

• For first-time buyers: establish solid financing and obtain rapid pre-approval, as the market is fast and competitive.
• For refinancing: take advantage of falling interest rates to renegotiate or consolidate debts.
• For sellers: offer polished presentations, supported by rigorous comparative analysis and market-aligned pricing.
• For investors: consider plexes and rental properties, due to sustained demand and potential returns.
• For everyone: rely on professionals (brokers, appraisers, notaries) to navigate a tight market and maximize opportunities.

Conclusion

In 2025, the residential real estate market in Sherbrooke and the Eastern Townships shows strong resilience: prices continue to rise, inventory remains limited, and sales times are shortening. For buyers, competition is fierce, but favorable rates and relative affordability offer entry points. For sellers, it's time to capitalize on marked appreciation, while adopting a wise pricing strategy. As a mortgage broker, your role is to support your clients with expertise, rigor and clarity in this dynamic context.