November brought more of the same high-flying activity levels we’ve been seeing since the early summer to the Vancouver region’s housing market. Home prices again posted double-digit annual increases while sales kept moving at a rapid clip.

The catch, of course, is these gains were driven by strong demand for single-family homes in the region. Condos in the City of Vancouver were faring better than their counterparts in Toronto, but they still posted relatively modest sales and price gains compared to, say, detached homes in the Lower Mainland.

“[T]he pandemic has shifted demand away for condo apartments, particularly in the Vancouver core regions, as families seek more living and green space, while investors see little demand for rental units given few new immigrants and temporary students,” wrote Central 1 Deputy Chief Economist Bryan Yu, in a recent research note.

Yu believes that, on the back of a steady stream of positive vaccine headlines, this diminished appetite for Vancouver condos is set to change in 2021. Along with continued steady price growth for single-family homes as demand continues to outweigh supply, the economist predicted that the high-rise market is in for a boost next year.

“Condo prices should also rebound as vaccine expectations lift both confidence in higher density living apartments while investor demand picks up with reopening of borders,” wrote Yu.

Dexter Realty’s Kevin Skipworth, who has been bullish on the underlying strength of the region’s housing market even during the spring shutdown period, also sees an opportunity for Vancouver’s condo market to be reenergized next year.

“As we move into 2021 and the potential for some relief from the pandemic comes, the push away from high rise apartments should relax. When immigration opens up again and service sector jobs return, demand for apartments will increase with it – both to purchase and rent,” Skipworth wrote in an email market update last week.

Reopened Borders, Vaccine Rollout Mean Vancouver Condo Prices will Rebound in 2021 by Sean MacKay | Livabl