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Sun, November 4, 20077 j) e1 u* x, A1 a
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Rent crunch to worsen
8 {% J% r7 s0 E' f) f3 c9 B6 SVacancy rate forecasted to dip to under 1%
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By KEVIN CRUSH, SUN MEDIA
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, v) ^' t9 L4 C! d# \( M# e6 qThink the rental market is tight now? Just wait until next year. $ X) b6 C8 a) [% {
' \. A+ F+ u9 J& \, W; rThat'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. W- `; z7 p' w0 s6 i/ W
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SIX MONTHS LOOKING
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; l5 H( Y5 i9 ?7 `# K) {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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( D4 [/ S/ U, |& L9 nFor now, the couple has been living with her brother and mother in a three-bedroom government-subsidized housing unit. 2 r6 l/ h1 m3 ?0 y
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They have been scouring the city for anything - but have found nothing in their price range, around $1,100. 3 _) i. M! j8 S0 q& G. @& e3 y
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"I graduated from college, but I'm still working two to three jobs just to supplement the rent payments," she said. k+ m( ]! | |' o$ N
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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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& X) T6 `6 A5 P! S4 cThe 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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7 Y9 h; I* V" o! R! M; xA 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 $877 a month in October 2006.
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$ Z4 E. Z5 w4 }. H4 q6 K! p W"With the rental rates being so high, you can only do so much," said Jasmine. . E; E8 k. L/ {5 |! J4 x
6 l( Q1 i$ y% [- gMaking it worse, she has pets, and few places accept animals.
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Meanwhile, house sellers are facing a crunch of their own. % E( c# ~9 p, u2 M* {$ J" i. b! y
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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.
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$ [2 z: Y |8 O5 {# m' ^"It's been slow," said Alana Schulte, whose Goldbar home has been up for sale since June. ! Z* B* ~8 A' _6 N/ g* I
* F9 z& o: l$ J) [4 i/ X"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 $400,000 to entice buyers. So far, there have been only lookers. 0 X4 z% V+ m- @* @
3 m% u8 ~1 ^1 G, _8 [$ P+ OSchulte bought the house for $165,000 less than five years ago.
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4 D) b& X" t9 k# KHome prices skyrocketed because of investors buying up properties, said realtor Abe Hering. ; D( Q" b5 W8 J+ Q8 B1 E7 u
& k1 ~% m2 u- P, _" SINVESTORS A HUGE FACTOR
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"The investors were causing the market to spiral."
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8 P1 y) B% Z/ X. |/ iThose investors have left the market, leaving mostly people looking for a home to live in. ; s9 ?2 S5 Y7 N: A d# m9 c$ R: `
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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.
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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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