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Sun, November 4, 2007
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) Q" z, }4 W1 d5 p, hRent crunch to worsen& t6 Q/ N/ o5 z5 l9 q; p1 N5 @
Vacancy rate forecasted to dip to under 1%% K& X1 k1 F, x3 K8 r
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By KEVIN CRUSH, SUN MEDIA
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Think the rental market is tight now? Just wait until next year.
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That's when the apartment vacancy rate in Edmonton is forecasted to dip below the current 1% - making it that much harder for already frustrated renters to find a place to live.
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. G! ~) ?3 R+ J$ X1 {) x' p"It's just getting retarded," said Jasmine, who asked her last name not be printed.
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: Y A' ~# E- p* YSIX MONTHS LOOKING ( e8 k, y2 k; ]" N
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Jasmine said she's already spent more than six months trying to find a decent place for her and her fiance to rent with no luck.
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For now, the couple has been living with her brother and mother in a three-bedroom government-subsidized housing unit.
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They have been scouring the city for anything - but have found nothing in their price range, around $1,100.
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"I graduated from college, but I'm still working two to three jobs just to supplement the rent payments," she said. # ~3 L( J% U' K. F) S4 T
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According to new numbers from the Canada Mortgage and Housing Corporation (CMHC), the apartment vacancy rate for Edmonton is a minuscule 1%.
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The rent crunch isn't expected to get any better with the agency pegging the rate next October at just 0.8%. F* M% x) R% h+ u' B
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A limited supply of new rental buildings is keeping the market tight, according to the CMHC's outlook for Edmonton, released this week. Apartments being converted into condos is further keeping a stranglehold on renters.
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! H: O! h+ J! eRates are staying high with the average rent for two-bedroom apartments at $950 a month, up from $877 a month in October 2006. # |, O+ \ S1 x' c5 P& \
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"With the rental rates being so high, you can only do so much," said Jasmine. 3 E# b0 t- m, A n
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Making it worse, she has pets, and few places accept animals. 2 E, T: K4 }; e: {) l' ~6 e
+ R& Z2 q; m8 H3 M" jMeanwhile, house sellers are facing a crunch of their own. ' F4 p# ]. K4 T& ?
. x) J$ [" B8 V* ]. }1 c3 lWith a growing inventory, high prices, and wary buyers, houses can be on the market for months. The CMHC predicts listing periods will get even longer in the new year.
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* D* l1 y' D4 p# m4 Z H"It's been slow," said Alana Schulte, whose Goldbar home has been up for sale since June.
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% U4 u, ^6 ~3 `7 B/ A& U0 y4 E"Shoppers are shopping around a lot more now. They're taking their time. I have had one couple who have come in four times now, but they're not in any rush to make an offer." 3 q+ P4 ~2 t# {- b% a- c) C r+ f
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Originally listed at $450,000, in late August, she dropped her price to $400,000 to entice buyers. So far, there have been only lookers. % Z9 K" Q* ?3 f+ ^
9 `, n+ r- q! l xSchulte bought the house for $165,000 less than five years ago. / Y, J2 s0 j$ [6 F
5 J/ @# ?. Z" d7 gHome prices skyrocketed because of investors buying up properties, said realtor Abe Hering. 9 @% e/ C; Z3 r8 e8 l
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INVESTORS A HUGE FACTOR % ^% z" v0 x, p# _# Q
9 R5 r/ d8 Y6 z"The investors were causing the market to spiral."
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Those investors have left the market, leaving mostly people looking for a home to live in. 4 }0 w4 k& f. L7 S& s% R% @4 D9 M$ V
% \( @. L% h& C0 K4 a% D8 `Hering said there's just not enough of them to cause a real frenzy and they're often nervous about the high prices.
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4 X ~6 i0 n) {( X% n; [4 FThe Edmonton Real Estate Board recently reported the average single-family home in Edmonton sold for $399,555 in September, down 1% from the previous month. |
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