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Ron Chalmers, The Edmonton Journal
+ v& o+ l _ s; Y2 A/ rPublished: Tuesday, April 03, 20074 U% }9 _3 A6 c! H/ Z/ `5 E
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EDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.: O: G: s; F6 y/ M/ {, S) Y
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.: Z7 E6 z$ d: b' G* B9 N
4 a3 y" A# S2 qResponses were compiled on a 200-point scale, with scores above 100 indicating optimism that conditions are good or will improve, and lower scores revealing pessimism that conditions are bad or will worsen.% p+ @4 s/ f: g4 N- I5 p
8 f: H! T4 S7 h4 VIs this a good time to buy a house in Alberta?+ z3 T6 k1 s, }# m
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No, not according to the sample's composite score of 71, showing significant doubt.+ o4 n p8 w+ T' d" ~1 p" ^' R
j1 a! d9 Q; h7 R: HLeger's report noted "the relatively pessimistic sentiment regarding interest rates, combined with the fact that the housing market in Alberta has boomed over the last two years."
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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J' ~7 y# W W+ q4 g* M7 WA question about household incomes drew a score of 141, as most people expected incomes to rise.
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The sample scored 161 -- overwhelmingly affirmative -- when asked whether this is a good time to buy major household items "reflecting the fact that many Albertans are experiencing unprecedented levels of disposable income," the report said.6 z1 g l5 b% z
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The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.8 l' v4 t* h, m
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A related online survey of 420 Alberta business leaders similarly found optimism about fiscal conditions, current and future business conditions, and future unemployment -- all pushed by "the hot Alberta economy," the Leger report said.
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Among those several measures, it found that fiscal expectations were the least positive, "which may be attributed in part to the fact that Alberta has a new premier in place, creating uncertainty in relation to fiscal conditions if compared to the previous Klein administration."
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* z" `# [* q6 V" @% tThe business sample, like the consumer sample, expected interest rates to rise.
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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"If you're going to make a large spend, ask yourself what one or two or three more points would cost," he suggested. |
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