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Ron Chalmers, The Edmonton Journal
+ ^+ G) ^- d9 Q8 wPublished: Tuesday, April 03, 20071 o5 ~ `* m9 `, J7 K- r
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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.
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5 k8 ~ _+ ?7 _6 i$ U1 ]( jLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.& e g+ Q% y: W
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Responses 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.
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Is this a good time to buy a house in Alberta?8 u0 ~, a! M1 x% S
* T( i# }- p( B# nNo, not according to the sample's composite score of 71, showing significant doubt.: H b+ @* B6 k8 u* I( H
8 H9 K2 w: A7 J$ pLeger'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." F* v$ V$ C+ T8 C
' O8 _" H2 I. V$ YWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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A question about household incomes drew a score of 141, as most people expected incomes to rise.
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$ O% C- ]# O8 J/ V/ {7 L: B4 E7 u7 ]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.
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|3 o6 M+ \2 a& [The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.( g, L* i1 H; s2 Y% m5 ]
* g( i3 O$ D% o a( _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."9 l9 ^) ]5 `# [2 d6 b- N5 o, [
% E3 }4 B3 |! aThe 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.* ^$ \8 ]6 ~- \2 G' ~' Q4 I3 V
/ L1 P( }1 L* m# I2 G"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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