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Sun, November 4, 20070 h1 X, B; o o- x+ [
( l6 H9 t- Z/ p. rRent crunch to worsen# R2 g! N+ |+ X: V* R9 ^
Vacancy rate forecasted to dip to under 1%7 |; z2 C. o- _( z' o" g; J
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By KEVIN CRUSH, SUN MEDIA" u, e5 ^- q: Q7 o2 H M4 V! h
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Think the rental market is tight now? Just wait until next year. - H/ J! b9 J, ?2 B: S
; y% w+ g6 i! HThat'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. * b/ E l* f/ B- \# N8 _$ t; O
( `, {, y6 y' ?! s) d% k% y4 B$ Z"It's just getting retarded," said Jasmine, who asked her last name not be printed. ! x! I$ }9 k. k& n4 x
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SIX MONTHS LOOKING
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; g" \4 q2 @6 j; W. ?- X* SJasmine 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. % K4 C+ e7 E: b. o
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For now, the couple has been living with her brother and mother in a three-bedroom government-subsidized housing unit. 8 A) ^# T. a2 m; b' F1 R! M
; h% r! P- |- ~$ I9 I X' A) W* L2 qThey have been scouring the city for anything - but have found nothing in their price range, around $1,100.
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1 d' v: q4 o. s: q"I graduated from college, but I'm still working two to three jobs just to supplement the rent payments," she said. 1 a, O0 {9 M, E, p
) y0 i( s, s3 l+ ~8 [9 ^# iAccording to new numbers from the Canada Mortgage and Housing Corporation (CMHC), the apartment vacancy rate for Edmonton is a minuscule 1%. 7 [" A9 o4 F. b7 s& C
1 z: f$ v& v- X1 W2 l0 {/ z7 gThe 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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2 C, |( f6 i1 U# XRates are staying high with the average rent for two-bedroom apartments at $950 a month, up from $877 a month in October 2006. 2 _% J* P6 Z$ M# B! `6 l
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"With the rental rates being so high, you can only do so much," said Jasmine. ; H* l) u4 r/ H Z
7 x; W8 Y2 [, e9 B$ p7 K% f AMaking it worse, she has pets, and few places accept animals. 8 W6 D* b( ?$ T' k# U9 O
' f) N8 i8 |$ u8 R- ^. f2 gMeanwhile, house sellers are facing a crunch of their own.
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k: J& M! [/ f5 k# aWith 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. 7 m1 G3 Z: B0 c" I
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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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"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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6 {$ Q' [. s h; i+ q/ FOriginally 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 $165,000 less than five years ago.
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K6 x) S. k& w" {8 d+ {Home prices skyrocketed because of investors buying up properties, said realtor Abe Hering.
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9 p" P" ]% r! S- IINVESTORS A HUGE FACTOR
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i" c1 i3 l: p' D"The investors were causing the market to spiral."
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Those investors have left the market, leaving mostly people looking for a home to live in. & O0 T, F( S6 h7 F1 @4 g& [
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Hering said there's just not enough of them to cause a real frenzy and they're often nervous about the high prices. ' G. x' U6 P- n4 Y$ r4 U( B9 |
: |+ Z; `3 R! I7 @$ d, f+ nThe 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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