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Sun, November 4, 20077 {" y3 {+ y& ~( O0 O! _- }9 g
5 l% g* r$ e/ K" r( I" BRent crunch to worsen& x$ l" B1 T" h2 F# Z! l/ M
Vacancy rate forecasted to dip to under 1%
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By KEVIN CRUSH, SUN MEDIA
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% f, r2 `* @/ [, \! I( c- w5 eThink the rental market is tight now? Just wait until next year. ( c' |9 i1 |1 z' d2 z$ l3 F" w$ m
W# \5 e- H B2 q* T( P8 I, D5 mThat'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. - S# R% _0 m3 J9 ^0 X. R, a% H' t0 i
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"It's just getting retarded," said Jasmine, who asked her last name not be printed. 3 n8 t. {$ H; \) t w( y0 [. V
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SIX MONTHS LOOKING
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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. 3 _& H1 y* {6 y4 V
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" l) b$ ^' c: W* a3 W3 D- t/ kFor now, the couple has been living with her brother and mother in a three-bedroom government-subsidized housing unit. - n0 k3 i; a& @* X( @9 ]6 B3 d
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They have been scouring the city for anything - but have found nothing in their price range, around $1,100. % h; v: F, Y3 C. N0 x
; ]! d- r4 n9 R5 `) K+ |"I graduated from college, but I'm still working two to three jobs just to supplement the rent payments," she said. ! h) e9 T% ?, Z0 L
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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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) r f8 G/ Q% SThe rent crunch isn't expected to get any better with the agency pegging the rate next October at just 0.8%. 4 B2 y# q! h+ F% O
& x1 _) ~. `. V7 `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. - U0 [9 ]( t) E, W: w( w
1 H% R+ p T" u5 e2 f) Q) oRates are staying high with the average rent for two-bedroom apartments at $950 a month, up from $877 a month in October 2006. % ?; |4 K8 a% |
6 w! q/ J. R f# @* p"With the rental rates being so high, you can only do so much," said Jasmine.
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Making it worse, she has pets, and few places accept animals.
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/ O: `2 C' U8 ~6 I; U. dMeanwhile, house sellers are facing a crunch of their own.
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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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1 K5 u3 X* t; i& i' a/ P X+ `"It's been slow," said Alana Schulte, whose Goldbar home has been up for sale since June. " ~* S5 U, s+ V
! a9 d; P( l5 A0 I) ^5 h"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."
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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. , b1 X% M: f* _+ O. G
8 a( @ g J w5 H. B6 USchulte bought the house for $165,000 less than five years ago.
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Home prices skyrocketed because of investors buying up properties, said realtor Abe Hering. 8 k3 W N$ `7 d) x( `
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INVESTORS A HUGE FACTOR
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Y% G' F' p' t# O- G7 X( S. B"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.
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2 B6 {# Y8 V* d" A+ EHering 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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Q3 x/ ]3 `# b3 WThe 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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