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Sun, November 4, 20076 [' e5 L0 F8 @% Y4 F
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Rent crunch to worsen
0 G: w$ O3 w) v. I! KVacancy rate forecasted to dip to under 1%3 L" a# q, r# x1 H; j- S) d
1 i3 }2 _: e1 YBy KEVIN CRUSH, SUN MEDIA
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Think the rental market is tight now? Just wait until next year.
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7 Y, p. R. G* ]# C( u, o7 }9 ]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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& J' K6 ] N( Y, N- ^; n- Q/ k"It's just getting retarded," said Jasmine, who asked her last name not be printed.
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p, T# F. }6 o+ v% `9 VSIX MONTHS LOOKING
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% z4 D+ s# z* L$ qJasmine 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. . a1 F! e( K5 C1 ]* u" j: C
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$ ~+ k8 M2 p" ]/ i- ]For now, the couple has been living with her brother and mother in a three-bedroom government-subsidized housing unit. . k0 O; ~8 q: z
" K* F. L9 C) Y) J; z2 ?. ?( OThey have been scouring the city for anything - but have found nothing in their price range, around $1,100. - e$ L) F$ b0 {1 K$ D1 j4 r" k2 P
- V: P) T0 h, z" F# d) V"I graduated from college, but I'm still working two to three jobs just to supplement the rent payments," she said.
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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%. 1 f7 r5 m9 V5 N" [5 v
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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%. $ {. U. o! T/ a& D+ H
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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. # t& u( H; ]% P, L9 c- }
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Rates are staying high with the average rent for two-bedroom apartments at $950 a month, up from $877 a month in October 2006.
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"With the rental rates being so high, you can only do so much," said Jasmine.
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3 j. @; s0 A: pMaking it worse, she has pets, and few places accept animals.
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- E5 N) p: ~ W5 A n# C1 j7 z( @, S; _9 zMeanwhile, house sellers are facing a crunch of their own. 9 f+ t: T2 n) G
4 `2 k, { ?0 }With 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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- x( n [7 p! R8 c1 }6 f"It's been slow," said Alana Schulte, whose Goldbar home has been up for sale since June. $ z6 [ @4 C4 _2 ^, n+ R+ s( x- X7 B
; C# {/ a* `+ v: m* U1 c; ]. \) w"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." " s# k* b7 t- ^, H, {
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Originally listed at $450,000, in late August, she dropped her price to $400,000 to entice buyers. So far, there have been only lookers.
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; n2 s/ r" X6 H. b7 Y& u$ m7 ]Schulte bought the house for $165,000 less than five years ago.
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% V1 N/ Y6 @; GHome prices skyrocketed because of investors buying up properties, said realtor Abe Hering.
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INVESTORS A HUGE FACTOR . ^) O' ?* m' X
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"The investors were causing the market to spiral." 1 ^. n; @. H- q) i. L
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Those investors have left the market, leaving mostly people looking for a home to live in. : y/ r( V1 l& v1 b$ }' v5 i6 C
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Hering said there's just not enough of them to cause a real frenzy and they're often nervous about the high prices. & }6 M6 D$ ^- X2 D& H
% M8 p; W' z2 V; [" P, ]. V+ _ c' JThe 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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