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Sun, November 4, 2007$ Z7 k+ T5 B1 z, F
P: L* i/ T% {2 SRent crunch to worsen
$ T- b5 q4 t. X7 J" AVacancy rate forecasted to dip to under 1%1 k9 C& e6 t& D; T3 g% U
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By KEVIN CRUSH, SUN MEDIA' G" c7 B' M5 l1 R
* Y$ o/ ~2 Q0 Y2 Y$ t- S: mThink the rental market is tight now? Just wait until next year.
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9 S% Q1 w/ H9 `& E7 gThat'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. ; e% `+ _+ \; j9 d
. z' i! r4 B6 F( t"It's just getting retarded," said Jasmine, who asked her last name not be printed.
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SIX MONTHS LOOKING ' O2 C! g8 s2 Q7 T3 [+ u" H" [
/ v6 f6 Q6 g7 \& hJasmine 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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7 f0 m+ V8 Y% E- {. w, q% WFor now, the couple has been living with her brother and mother in a three-bedroom government-subsidized housing unit. 2 B$ l6 N4 m8 m. C6 K3 }1 ]" J
0 P" V7 b* h$ UThey have been scouring the city for anything - but have found nothing in their price range, around $1,100. # E; s" J( m- `4 `5 O( a4 U
+ Z8 Z5 F' o; ~( a0 V"I graduated from college, but I'm still working two to three jobs just to supplement the rent payments," she said. : w; D) z$ v3 d
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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%. & p8 ^, d" d7 M! H
8 o/ e4 N: `6 s& A! p7 b, PThe rent crunch isn't expected to get any better with the agency pegging the rate next October at just 0.8%. 8 \0 B4 b$ R& U' H2 M' \
4 _! F+ Y0 J9 Z% yA 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. - C( o4 w% g; ~4 d4 X
. q0 G! l+ \: p: q4 F( C' D# aRates are staying high with the average rent for two-bedroom apartments at $950 a month, up from $877 a month in October 2006. / K3 y! @$ M. y3 ?: p
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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.
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Meanwhile, house sellers are facing a crunch of their own.
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, ^" Y% ^$ L6 W9 n# m# B! yWith 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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"It's been slow," said Alana Schulte, whose Goldbar home has been up for sale since June.
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|8 Y% `$ i$ N2 d L9 ]"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. ) c2 b( f, F6 o9 X
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Schulte bought the house for $165,000 less than five years ago.
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, H& @; ~8 V6 k) N; nHome prices skyrocketed because of investors buying up properties, said realtor Abe Hering.
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INVESTORS A HUGE FACTOR ; P% Q. q& r/ T% m+ t' I' z1 v
/ ?8 S& N+ M, T' s7 o% n* T9 h$ j5 U"The investors were causing the market to spiral."
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7 O8 X$ d: H' _( ZThose investors have left the market, leaving mostly people looking for a home to live in. # T' b Y- k/ o" v0 m
* p" t, k+ G6 |! A2 tHering 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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0 l% E' P( P% B, TThe 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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