Rent crunch to worsen

YOKO

Sun, November 4, 2007

4 w3 \& I7 a6 k* _& pRent crunch to worsen
% K) [. ~, J! h/ d  y% [% ~. D5 S; bVacancy rate forecasted to dip to under 1%

By KEVIN CRUSH, SUN MEDIA

, x: J: H4 \% O* j  q) tThink 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.

; x% p. k- A; ~  W! m' v"It's just getting retarded," said Jasmine, who asked her last name not be printed.
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" o& }; }4 ]1 bSIX 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.
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7 h3 G/ r- y  L/ f9 YFor now, the couple has been living with her brother and mother in a three-bedroom government-subsidized housing unit.

They have been scouring the city for anything - but have found nothing in their price range, around $1,100.
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" X( V5 B& e- w; b: o"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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  s5 s; p1 Z& y( c2 M# |2 d& @/ eThe 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.

; R# F6 c  o. n1 Q- w' K/ V* vRates are staying high with the average rent for two-bedroom apartments at $950 a month, up from $877 a month in October 2006.

" h! c- |) e( l9 k* q"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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+ O( ?4 C' n' P. l& q/ ~5 bMeanwhile, house sellers are facing a crunch of their own.
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% y) L* ~' c/ X. qWith 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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$ p' a7 ?- O' m8 C! Q  Z/ @"It's been slow," said Alana Schulte, whose Goldbar home has been up for sale since June.

  ]+ z# g3 C+ K7 d. }1 Q0 y"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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9 s8 w% h' U! }# a5 ]+ u2 k* 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 $165,000 less than five years ago.
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. F$ D8 v/ S3 x; K5 r# n: ?# {Home prices skyrocketed because of investors buying up properties, said realtor Abe Hering.

2 h( V+ w" L& W4 U$ M" VINVESTORS A HUGE FACTOR
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# p! E2 [) H( m" W+ R9 R& C6 s"The investors were causing the market to spiral."
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1 n! L1 O0 z0 A2 n% `5 mThose investors have left the market, leaving mostly people looking for a home to live in.
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9 d5 @4 U' }$ C; r7 PHering said there's just not enough of them to cause a real frenzy and they're often nervous about the high prices.

0 h$ S% ^( p7 C5 E, ]9 {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:
有房的, 房子在贬值.
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:
有房的, 房子在贬值.
没房的, 房租在上涨.

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待不住了，还有一个字“走”。

YOKO

Don't be sad!