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Ron Chalmers, The Edmonton Journal
! I3 N7 g7 k3 n: O" G0 F3 OPublished: Tuesday, April 03, 20078 x# f' w6 [! m3 f" x" T9 E8 F
$ X2 N8 b) c+ i+ S# z) s/ _EDMONTON - 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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: ]+ @/ w D" C1 K! H nLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy." P5 {9 }$ B& d g( Y
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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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Is 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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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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4 ?7 T0 X1 e& b9 h6 g1 B3 n! O- H7 zWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise./ Y0 m0 C9 T+ f8 d1 e* ^* k
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A question about household incomes drew a score of 141, as most people expected incomes to rise.+ ?2 d/ b* w8 Q5 j. B" F4 T% I
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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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2 @( f' V, B: G$ M* z) v0 j/ B* uThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.. a' l$ i- k& N* h! ~# U/ J: g; z$ ]/ e
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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 a+ T$ ` Z! x
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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."
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* z+ X9 g- b% \The business sample, like the consumer sample, expected interest rates to rise.2 {6 s$ m! g& X' q& W4 M8 m2 S; B
8 a6 e2 |7 L' W; ?Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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7 u( _# P4 [! K4 c/ u, E6 o"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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