With so many construction cranes poking out from Vancouver’s skyline over the past few years, you’d think there’d be more than enough condos for people to buy.

But May statistics from the BC Real Estate Association show there’s still not enough housing supply to keep up with demand.

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In the Lower Mainland, the ratio of home sales to active listings was more than 50 per cent last month.

Source: BC Real Estate Association

A 12 to 20 per cent ratio is considered balanced, says the BCREA’s chief economist, Cameron Muir.

“When the ratio is above 20 per cent over a period of time, there’s upward pressure on prices,” he says, creating a seller’s market. “The challenge is meeting a strong demand.”

REW.ca is reporting that condos were the hottest commodity in May. The sales-to-active-listings ratio for condo-apartment units, which stood at 82.2% at the end of April, is now a jaw-dropping 94.6%. For townhomes, the ratio is 76.1%.

“Demand for condominiums and townhomes is driving today’s activity,” says Jill Oudil, president of the Real Estate Board of Greater Vancouver. “First-time buyers and people looking to downsize from their single-family homes are both competing for these two types of housing.”

Additional supply will help limit the erosion of affordability, Muir says.

Who are all the people buying real estate?

While foreign buyers are putting pressure on the housing supply, “we’re also seeing a significant number of intra-provincial migrants,” Muir says. “The B.C. economy is doing well. Cities attract young people because cities are where the jobs are. Millennials like to live in cities…. Yes, there are more affordable regions but the availability of jobs at 100 Mile House is not as high.”

While the media focuses on stories of people leaving Vancouver because of high housing costs, there’s always been a “bleeding out” of Vancouver’s population, he says. “It’s nothing new — there’s no substantial change."

Growth areas are Langley and Surrey, which are the same size as Vancouver. You may be able to buy a condo there for $300,000 but those prices are also increasing. “We’ve seen a significant ramping up on prices — 30 per cent year over year.”

Those new residents aren’t necessarily commuting to Vancouver. The burgeoning number of industrial parks in those two communities are helping to create jobs that attract new residents. “Across Metro Vancouver, people are more likely to work within their own city than travel to Vancouver,” Muir says.

REW.ca is also reporting that a new record for home prices was set last month as buyer activity rebounded to near-record levels, quoting Real Estate Board of Greater Vancouver figures published June 2.

Sales rose nearly 23 per cent compared with the previous month, and were only 8.5 per cent behind those of May 2016, which remains the busiest May on record. Last month’s figures were also nearly 24 per cent higher than the 10-year average for the month.

For more real estate news go to REW.ca.