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Ron Chalmers, The Edmonton Journal% B. D% T/ P, e W+ M2 A5 o4 P
Published: Tuesday, April 03, 2007
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EDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.% C& g7 u: T5 S7 z3 j! q
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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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.5 B3 V' E# R9 Q0 j" o/ g4 @' H
5 C6 B" N5 x) C: m3 P$ RIs this a good time to buy a house in Alberta?
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# v" N, P- E* BNo, not according to the sample's composite score of 71, showing significant doubt.
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- r; L5 o9 v" ZLeger'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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/ ?+ Q3 ~. i. g1 LA question about household incomes drew a score of 141, as most people expected incomes to rise.7 I P0 f% ?5 g9 a8 H, q6 W
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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.
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6 [% l* W5 w/ O2 QA 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.0 f. @& y# v0 _9 t1 k) Q& a& Q, s
/ F9 V* a& z% Z2 UAmong 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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. b2 R7 X' A. I- P- PThe business sample, like the consumer sample, expected interest rates to rise., N/ ], C6 o' R
7 P. d& _7 d8 Q1 IBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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; m! v. e0 k" b d1 L" K"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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