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Ron Chalmers, The Edmonton Journal# X$ `, D* n% E& m/ j* N% R5 n
Published: Tuesday, April 03, 20075 G4 ]4 n4 r9 w A9 |5 @' Y8 E7 v
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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.# K; Q- F9 @+ M- j
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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- W3 l$ g' a0 {9 ~* TResponses 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.9 { r4 N, K& P i* ]
% y% G* E; f" s* F9 x* I6 [& ?) JIs this a good time to buy a house in Alberta?
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9 V9 x# z+ r" c. [; Y1 h' NNo, not according to the sample's composite score of 71, showing significant doubt.+ ?: b9 A' K; a. D
( a" ?$ X: n1 xLeger'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."+ ]5 L1 y3 F3 m8 K
9 Z) L) @: K- l+ Y$ d9 wWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.5 n; P" {8 t) Y1 N, G l5 c
) M$ u1 O4 L# @( q K4 KA question about household incomes drew a score of 141, as most people expected incomes to rise.
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- R+ J# ?/ i1 `: V8 R" IThe 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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( ^- W6 G5 h4 ~* |% B7 HThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.
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0 P, z( b% _1 i3 d: {& ?& }" m5 o3 RA 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.": Z: h/ p( F! g' W8 X: b0 k1 U9 p
2 f w3 x. s4 u1 K" YThe business sample, like the consumer sample, expected interest rates to rise.- X& m7 u* e. r
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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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