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Ron Chalmers, The Edmonton Journal7 p3 i8 y9 n) P1 z. {+ h
Published: Tuesday, April 03, 2007( J8 v; }' e9 [: E' n7 E9 m6 p
# P! e2 g+ t6 A9 t0 KEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.' R' C, T) Q$ L
& t0 e6 V1 m7 f( l0 aLeger 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.
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& c! Y o% T) B4 K! gIs this a good time to buy a house in Alberta?9 y* K6 Y8 o6 n) W! \
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No, not according to the sample's composite score of 71, showing significant doubt.
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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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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.4 t3 y9 {( H/ X% }2 N
% r3 |; J l7 Y2 }" X cA question about household incomes drew a score of 141, as most people expected incomes to rise.
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: |# i) {* L0 ^ kThe 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.5 @, o8 K5 W u7 E# p# t; X/ j* L
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The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.7 p2 e4 R, D$ G' m$ Q4 N( ~' C& K3 d( F
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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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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 `# ?+ p8 d* 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.
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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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