Rent crunch to worsen

YOKO

Sun, November 4, 2007

% d* q+ {9 v5 a& O( z1 bRent crunch to worsen
3 P# t7 q( ]) j; O6 _Vacancy rate forecasted to dip to under 1%

By KEVIN CRUSH, SUN MEDIA

' f0 K) f( l. q, T0 t; gThink the rental market is tight now? Just wait until next year.
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# c* S6 r! l0 r5 D! ZThat'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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3 ~. m& ?% t' T"It's just getting retarded," said Jasmine, who asked her last name not be printed.

SIX MONTHS LOOKING
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. ^$ m2 Z% w8 g  E, ~$ I" cJasmine 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.

: c& Y( a/ r  `They have been scouring the city for anything - but have found nothing in their price range, around $1,100.

"I graduated from college, but I'm still working two to three jobs just to supplement the rent payments," she said.

6 x4 F9 o+ Z) V/ m+ G  hAccording 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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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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Rates are staying high with the average rent for two-bedroom apartments at $950 a month, up from $877 a month in October 2006.

"With the rental rates being so high, you can only do so much," said Jasmine.

Making it worse, she has pets, and few places accept animals.
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/ a9 U) V" N  |+ iMeanwhile, 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.

- G# x3 L  @; h* e3 F' l9 a- a"It's been slow," said Alana Schulte, whose Goldbar home has been up for sale since June.

"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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; N4 }7 s8 W$ HOriginally listed at $450,000, in late August, she dropped her price to $400,000 to entice buyers. So far, there have been only lookers.

Schulte 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.

INVESTORS A HUGE FACTOR

4 n1 a5 V& x: h' @"The investors were causing the market to spiral."
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5 v/ @9 t, n; h! cThose investors have left the market, leaving mostly people looking for a home to live in.

8 Q2 ]. a. k8 u2 D( t) g: Q, SHering said there's just not enough of them to cause a real frenzy and they're often nervous about the high prices.

) E+ G- ~% C3 h* n+ @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.

水管工

现在是大家的日子都不好过:
$ L' A) ]3 M( o& Z- f8 S有房的, 房子在贬值.
. u) j, m% `  m没房的, 房租在上涨.

YOKO

I wondered that how much the rental would be going up for just two bedroom apartment next year???

人生几何

原帖由 水管工 于 2007-11-5 09:42 发表
现在是大家的日子都不好过:
+ S2 [9 h3 f; ]% I: b/ g* H; l& o4 D有房的, 房子在贬值.
没房的, 房租在上涨.

  b0 S+ h5 u  f( }9 w/ Q
待不住了，还有一个字“走”。

YOKO

Don't be sad!