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Ron Chalmers, The Edmonton Journal
# {( c4 b7 s, M" ^9 RPublished: Tuesday, April 03, 2007
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R# L3 n$ W( K! z4 V6 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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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.8 |) r% D+ p2 v/ h! _2 n0 G
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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.# `, B8 R% u6 h) g2 p$ j8 v$ q# b
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Is this a good time to buy a house in Alberta?* q9 Z4 G6 g; n* K/ k# ?9 I1 ]- D+ d
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No, not according to the sample's composite score of 71, showing significant doubt.
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) e4 H; ~* H2 P% g/ \& ILeger'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.- k6 N3 j5 b9 ?( L) p$ z
3 z: d) B6 \ G0 U+ Y! nA question about household incomes drew a score of 141, as most people expected incomes to rise.( g5 u2 z6 C. U4 \
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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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The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.3 R. a$ t q4 E( f/ l
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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.4 p$ \; z8 a# A( |
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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* b7 m' r6 T" Z ^( a
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The business sample, like the consumer sample, expected interest rates to rise. |0 l* ^9 z& m; ?: G8 \- ^: E
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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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