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Ron Chalmers, The Edmonton Journal( T) L2 i k' ^3 ?5 o
Published: Tuesday, April 03, 2007
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# S' \/ Z& U* D: G) _- Z6 {& L7 {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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$ d0 q. Y w# N7 S" T0 A- v# mLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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, `& _: r/ }1 _: J. y9 G3 OResponses 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.8 h% Q9 o5 d. |* \
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Is this a good time to buy a house in Alberta?0 m( T# Q% T4 e, g$ f& o% F, k; q
( ?! p6 b; X' ?9 z# f4 m- KNo, 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." J7 @1 }/ h) x! U q' d6 I S
5 x" P2 ]# S* h6 r, DWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.# \: a+ ^; Q& X
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A question about household incomes drew a score of 141, as most people expected incomes to rise.# z# [0 ^ f% ]9 `
9 F5 x9 V5 M S& _4 FThe 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.$ O2 P0 Z- y# F% H% m
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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.& K9 {) S+ T( I* `
, f# b7 C6 J7 J' @* [2 YA 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.
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" V8 i% F* V2 y3 M2 {7 ^. o; Y/ nAmong 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."; j+ u8 q! |4 r6 M
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The business sample, like the consumer sample, expected interest rates to rise.- h& l! b; B: Z3 P" H' i
5 K! L% q( Y; { }- \Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.8 R8 r5 C0 x& L2 I1 U7 s) X
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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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