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 per cent for all homes. Broken down by property type, the ratio was 15.2 per cent for detached homes, 25.7 per cent for townhomes, and 32.5 per cent for apartments.

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