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Ron Chalmers, The Edmonton Journal
& N- Y9 @/ H! g: c, SPublished: Tuesday, April 03, 2007' g4 I' X7 B1 B( ]8 Q! i5 t
" Z1 {/ _/ c! T3 m! XEDMONTON - 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.4 H' V% C. s4 E8 e' j; m
2 m3 n) g% ~) Y7 ^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.( J2 M% M! ?% l$ [# Z
1 L" V$ _/ a; b6 Q p# h1 XIs 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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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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9 d& C" s, l0 ZA 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.
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1 q. v/ L5 L, {5 F9 C: wThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.& n3 b' t! _, E
_- a; L! ?5 Y6 v* t! nA 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.* s7 Y6 Y. }$ K: a+ u B* F- L/ w' C
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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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The business sample, like the consumer sample, expected interest rates to rise.
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4 n( c: A2 n* Z9 l. o+ E6 V" pBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.: J9 s% }# h/ t7 V: G8 F+ Y
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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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