Demand is beginning to outpace the supply of new homes coming on to the market in Metro Vancouver.

Over the past few months, the ratio of the number of home sales compared to the supply of homes available has been going up, indicating a lack of choice for home buyers.

Last month, this ratio, called the sales-to-active listings ratio, was 23.4% for all homes. Broken down by property type, the ratio was 15.2% for detached homes, 25.7% for townhomes, and 32.5% for apartments.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.

REBGV : Housing Supply Becoming Constrained in Metro Vancouver