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Ron Chalmers, The Edmonton Journal
9 t) b9 s3 F; ^" Z6 j( [Published: Tuesday, April 03, 2007
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8 b" C/ e8 b$ G* T# cEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items., m5 F: u2 M( d2 j. e. l
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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3 w+ v' F4 X' L: P4 R6 \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.% w9 }2 ~& k& p# k, x
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Is this a good time to buy a house in Alberta?! S3 @# Z/ Z. n0 W& e
! ~1 |- J' {1 a" a+ f0 Z' }& J( SNo, 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."2 E# E6 X5 Y/ t5 s& [7 B3 }
0 y, e" C6 j( F8 |3 jWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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- M$ E% k9 o+ z1 @+ Y4 YA question about household incomes drew a score of 141, as most people expected incomes to rise.
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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.1 s9 o% y0 h& V; ]6 [' D# c
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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.( w4 H7 Q* y, t( X# Q! ~1 [
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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. W' d z. y9 S1 x1 [% f x# d y* H
! o' S, L) m- A4 ~* [7 U5 yAmong 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."$ r+ ~, ?% Q. t' m% M S
9 k0 `3 {3 Y* o5 J& {9 K. EThe business sample, like the consumer sample, expected interest rates to rise.8 h$ C" Y0 e- B$ W. Y
+ G/ `/ `3 L/ TBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.2 ^2 B0 T9 m: q& L3 m
/ }) {0 r% q' F& w"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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