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Sun, November 4, 2007* G- C" C) c4 o, ]
7 y9 g6 y/ {! k- b6 mRent crunch to worsen/ t9 w3 b; U. t! ?: z( i+ L
Vacancy rate forecasted to dip to under 1%; z- K! \; E, o9 Q1 f* H Y
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By KEVIN CRUSH, SUN MEDIA' ?) y* ^" S3 u ?
% k: a& R0 p# D7 t5 hThink 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. 9 a# G; I+ X/ m3 Z+ R
9 K; q% O5 [$ \4 ^"It's just getting retarded," said Jasmine, who asked her last name not be printed. ' }2 ^" ^8 D+ V7 p/ ~
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SIX MONTHS LOOKING 5 ~. n* }# f7 s0 C2 U1 j/ D
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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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$ x! Y# r) X8 e G4 a1 dFor 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 $1,100.
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"I graduated from college, but I'm still working two to three jobs just to supplement the rent payments," she said.
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According to new numbers from the Canada Mortgage and Housing Corporation (CMHC), the apartment vacancy rate for Edmonton is a minuscule 1%. ( ^" S, K0 Y7 g' `' I7 e
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The rent crunch isn't expected to get any better with the agency pegging the rate next October at just 0.8%. 1 Y/ [0 s2 j! H$ L0 z: @( K
! r. |; d1 C- K( D& nA 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. * [# _1 x6 C: f; w, Z9 @ K
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Rates are staying high with the average rent for two-bedroom apartments at $950 a month, up from $877 a month in October 2006. 2 v) i2 n& y" T4 {5 C( w" E
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"With the rental rates being so high, you can only do so much," said Jasmine.
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+ q$ G$ W( _$ |9 P; gMaking it worse, she has pets, and few places accept animals. $ M7 M# e1 X* }! Q% T; R4 _
8 |' c- ^% P* B6 v# gMeanwhile, 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. ' a( X7 C5 P. ^* `* A. ?
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"It's been slow," said Alana Schulte, whose Goldbar home has been up for sale since June.
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0 R6 c0 o8 Q5 k; p"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." $ x5 ~ I& F& F J, B8 n. h+ U6 `
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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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Schulte bought the house for $165,000 less than five years ago.
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! L0 e; ^5 X3 ^Home prices skyrocketed because of investors buying up properties, said realtor Abe Hering.
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* @$ W- V, \& RINVESTORS A HUGE FACTOR
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"The investors were causing the market to spiral."
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# N6 X- F2 u9 H) E( tThose investors have left the market, leaving mostly people looking for a home to live in.
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5 j+ |- t0 D1 t* w$ f5 Y6 L! VHering 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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The 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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