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Ron Chalmers, The Edmonton Journal
! l# A; X" {6 WPublished: Tuesday, April 03, 2007
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! S0 u. s7 S, m R+ y, n- D: X* dEDMONTON - 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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6 J9 [: z2 C! I# j9 ?Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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$ M+ t3 I- Z, ^4 b+ RResponses 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.- E9 i9 x, B! u' t# r
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Is this a good time to buy a house in Alberta?. q7 t5 f9 H( h$ _
2 {+ W& a. R0 g3 _6 V2 gNo, not according to the sample's composite score of 71, showing significant doubt.2 ~3 u* N* E. V; V' w
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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.", O3 \; C( d7 E0 p, y
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.' p: s! ^0 \2 R- T
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A question about household incomes drew a score of 141, as most people expected incomes to rise.1 b' e4 h- J4 p* [, k0 w
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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.
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- Q M/ }4 ^' B9 j/ [The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.* D B" U& B( Q Y0 ~
+ |: L }% g* B7 k4 w7 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.8 w2 A3 a) E5 i/ ]
/ [) E4 T+ _( Z& E- a3 e6 S! O" lAmong 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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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.+ r" L l- m' E" `! s" q
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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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