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Ron Chalmers, The Edmonton Journal
8 W' N; u- l" c+ E, {+ q5 O# i: P0 QPublished: Tuesday, April 03, 2007
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. I$ {$ w1 L `5 r m" u9 UEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items." U5 o4 Y6 H0 a/ S' F
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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. j( \. v+ ], W1 R" z1 bResponses 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.0 ?4 L& F+ H% a
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Is this a good time to buy a house in Alberta?* m; a$ q/ l- N0 [6 F
h& r( `7 T/ D: u# ]6 k3 ]No, not according to the sample's composite score of 71, showing significant doubt.
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/ n" k2 Q2 L3 t$ dLeger'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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- Y9 @: @: B/ f* B2 W+ L0 gWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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' i$ f3 [) u- k; mA question about household incomes drew a score of 141, as most people expected incomes to rise.% @1 T) c- ^3 S+ w% g/ S0 g% n# G3 b( \
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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.% u2 z& Q# i) G
; [; m1 S, H+ _; J4 f; p9 mA 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.% `7 A/ W% f! P& e8 E9 N
" i( n7 T* W2 I0 tAmong 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."0 Y* v) ~& l& p7 ^) w; L" E
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The business sample, like the consumer sample, expected interest rates to rise.8 U @) Z) o& u; N3 B8 U9 z: N( M
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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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