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Ron Chalmers, The Edmonton Journal1 T2 s( r' |* u* G5 z' b
Published: Tuesday, April 03, 2007
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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.9 B( R. `; }5 c4 N6 Z4 I
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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: s: Q' Q" { u- @6 Y5 U2 R1 X2 R* bResponses 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.( X; X) S! @! w8 D' P
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Is this a good time to buy a house in Alberta?
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J4 w! y1 w" I& z1 s+ ENo, not according to the sample's composite score of 71, showing significant doubt.
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~2 F8 f1 \7 ~$ y3 c$ 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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. P' I: N' B5 O1 r% t/ lA question about household incomes drew a score of 141, as most people expected incomes to rise.% J# M7 C9 Q/ Z* P7 v4 a
. l% H4 `/ [4 L. k1 cThe 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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4 M2 [+ ]. n/ ]' F4 W2 U( oThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower./ v) a0 {# G6 N* \- K9 P( u# X
8 o- T' N, c1 B; k% W2 j- cA 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. ?( |: G9 k6 Z! m( z- s5 ?# p
; s1 n* }5 ?8 \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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The business sample, like the consumer sample, expected interest rates to rise.
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7 b/ m8 L0 Q% b2 YBarry 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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