Equity News - 3/10/2008
Equity Capital Management and Realty Ltd:
Calgary Rental Market News
The Calgary Apartment Association recently released new statics indicating the vacancy rate in Calgary will increase to 4% this year. This is a significant jump from last year where the vacancy rate was much less at .5%. One of the main reasons for this is the supply of condos & homes that are available for sale now. With the huge inventory of listings for sale, it is allowing for more renters to become homeowners. Another contributing factor is the decline of the net migration to the Calgary area.
What this means for you
Do not let the high vacancy rates discourage you. The president of the Apartment Association also noted that Calgary landlords should not expect rental rates to decrease due to this. "The expenses realized by landlords have not dropped therefore the amount that they must collect in rent will likely remain the same."
With the uncertainty that is currently facing our economy, a lot of prospective buyers are choosing the "sit & wait" approach before they decide to purchase. This creates another outlet for landlords to access renters.
What are we doing to ensure we provide fast turnovers?
With the vacancy rates being so high this year, we understand how important that everything be done to ensure your home is leased in a timely manner.
Equity Capital Management & Realty Ltd. recognizes that two important factors in accomplishing this are pricing & advertising. With the increased volume of homes currently for rent in Calgary, our company tracks current market conditions and understands how effective pricing can make the difference in having your property sit vacant for a period of time or have it rented promptly.
Advertising is crucial. We are doing our best to ensure your home receives maximum exposure when it becomes available. We are currently offering more methods of advertising than ever. We have recently incorporated several prominent classified websites into our portfolio, including www.kijiji.com & www.craigslist.ca and have been receiving very positive feedback.
Overall Investment Outlook
Current market conditions and long range forecasts indicate that we are in the midst of a recession that is deep but will be short lived. The housing market could make a significant rebound in 09 due to historically low interest rates, and lower prices, which should prompt first time buyers into making a buying decision.
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