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Ron Chalmers, The Edmonton Journal7 ~) k {4 _+ g! n( Z2 K, W+ o
Published: Tuesday, April 03, 2007
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4 ?+ o$ {9 B! h' r0 r: u. o J3 q& J ]EDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.3 e% b- S- b( I
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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.7 D! q& D z& r
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Is this a good time to buy a house in Alberta?
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7 J3 x3 ]3 h7 }No, not according to the sample's composite score of 71, showing significant doubt.4 Q6 m2 O) f' i. o7 K# q
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Leger'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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- o# S( U& [9 o8 ]) z0 p% ]7 k0 iWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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1 I" ?, k1 _1 B6 S2 ?8 UA question about household incomes drew a score of 141, as most people expected incomes to rise.
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* D( L9 O8 _9 P; ~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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8 p; Z# z7 o) ^* ]1 W7 {8 h0 SThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.; X* A( ]7 H1 b' y. F) G7 ~+ N
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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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j0 I. w/ \; f, bAmong 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."4 p5 T( }; l* g. {8 h# [' c. S
$ y$ Y6 {7 S2 L. T" ?; cThe business sample, like the consumer sample, expected interest rates to rise.
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0 v4 u7 @$ y) W8 B/ h, O z7 fBarry 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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