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Ron Chalmers, The Edmonton Journal
& J3 C g0 ?$ y2 lPublished: 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." A* [% g4 b( O7 s2 }% m
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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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.) G& ~0 g$ ~* Y* L) Z0 {( y
4 {) f0 E4 Q+ M1 C/ [1 d9 B; dIs this a good time to buy a house in Alberta?
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No, not according to the sample's composite score of 71, showing significant doubt.
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' R/ `* Z: z: n. c; q+ O* qLeger'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.") C, {% p* e" }$ u- ]8 V& ]$ E
) M% d, ]( u5 S, }$ ?When 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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\: q! l; o4 r$ o1 J5 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.$ A1 L5 B; z- j3 j
3 P( L/ ?5 p- E2 n9 |The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower." [: Y& a8 e) d; i
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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.3 l3 P7 n! ^) R
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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.") q/ P3 ^8 o9 P. Q
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The 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.+ F6 \% f. r: o' o; @7 O
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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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