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Ron Chalmers, The Edmonton Journal
4 j) k c. _9 P3 TPublished: Tuesday, April 03, 20070 l Z: F$ ^/ R4 Q% x3 V: a! p
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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.
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5 x7 U: ^! P0 @. P3 wLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.9 T1 }3 N- l" F& ~# a1 {
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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 Y! X( w) X# g9 |! T+ v' b
9 |7 k* j* M1 J8 M/ {0 |' H9 [Is this a good time to buy a house in Alberta?, Z4 X' I7 U! o6 M1 J; F
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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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' }6 X. u0 u. [: l( z& I! W; G3 Y- LWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.& n2 _4 z7 i3 g2 u
4 b& v; Y0 \2 f: J0 }. AA question about household incomes drew a score of 141, as most people expected incomes to rise.7 r: Z8 x0 ] f# ?
0 Z/ r$ D& w8 b* \$ ^0 x; ?3 |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.+ j; c* \* S3 k0 ]: i' t1 `
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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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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.+ p& y# k0 t% \- V
, k# R- p' t% E GAmong 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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3 q4 l: m7 Z# [+ ]8 HThe business sample, like the consumer sample, expected interest rates to rise., P' q+ u4 [5 }1 s6 S4 ^% f. \
) y) w9 i- _2 b1 G3 u0 y+ }Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.( A" W v0 g& n' K
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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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