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Sun, November 4, 2007
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Rent crunch to worsen
; C' }- L6 N6 ?4 K& f7 [( K qVacancy rate forecasted to dip to under 1%
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! f' `# I: f4 n" s6 a& x+ F4 nBy KEVIN CRUSH, SUN MEDIA0 j7 W2 I; C5 A+ Q! V1 ~' i8 p
" J% T% ^9 k2 eThink the rental market is tight now? Just wait until next year. ! K" U9 R- `7 J& q
* C K3 p$ X [; T3 ` W d- xThat'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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"It's just getting retarded," said Jasmine, who asked her last name not be printed.
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SIX MONTHS LOOKING - N3 B N- U! E A) B) ~
+ H6 A( {# K1 w1 @4 ?- U0 LJasmine 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. $ }2 j- B0 W( ^' w7 ]: t
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* ~8 t ~7 y1 Q$ T! ^" h2 X/ ? q& d3 OFor now, the couple has been living with her brother and mother in a three-bedroom government-subsidized housing unit. ( J: }1 t1 S: g! O& @5 Z
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They have been scouring the city for anything - but have found nothing in their price range, around $1,100.
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' i! c. {' t+ x' C"I graduated from college, but I'm still working two to three jobs just to supplement the rent payments," she said.
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According to new numbers from the Canada Mortgage and Housing Corporation (CMHC), the apartment vacancy rate for Edmonton is a minuscule 1%.
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The rent crunch isn't expected to get any better with the agency pegging the rate next October at just 0.8%.
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# [; m/ k" t( R1 }$ F2 P1 |+ HA 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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Rates are staying high with the average rent for two-bedroom apartments at $950 a month, up from $877 a month in October 2006.
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"With the rental rates being so high, you can only do so much," said Jasmine.
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Making it worse, she has pets, and few places accept animals. ( b4 `5 S6 U+ b
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Meanwhile, house sellers are facing a crunch of their own. # t' i: h) k# C% `2 V5 L
: {# x# r8 N" t4 ^" b0 PWith a growing inventory, high prices, and wary buyers, houses can be on the market for months. The CMHC predicts listing periods will get even longer in the new year. 5 a" ] y# v+ v6 z
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"It's been slow," said Alana Schulte, whose Goldbar home has been up for sale since June. 8 a* r5 i+ k( m
2 l, Z; B) Y$ |1 D1 K"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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2 w( U' B# ~! Z. N: j, G% H" a7 wOriginally 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 $165,000 less than five years ago. 9 B2 R/ ^% O" {1 q
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Home prices skyrocketed because of investors buying up properties, said realtor Abe Hering. * i$ k$ k+ H2 h( p
- o3 `; x, W: FINVESTORS A HUGE FACTOR
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"The investors were causing the market to spiral."
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* H8 U7 h# ` d2 e/ i! IThose investors have left the market, leaving mostly people looking for a home to live in. 7 j1 r! E f6 z, q; t
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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. 7 F7 U, v, L! T' w* m
. [( S4 Y v9 N: OThe 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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