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Ron Chalmers, The Edmonton Journal2 g8 J+ C3 f( _! x' v) v$ d; P! L
Published: Tuesday, April 03, 2007; ~7 Z2 v: f6 q; M9 R
( f) U* `5 Y% \3 z( }EDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items. D" u0 d0 M0 L& D
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy." J2 l. r5 p2 D4 o, H; S
5 h3 N) n- J, P4 ~6 D; xResponses 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.
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3 d! ~( r/ W7 {, @0 BIs this a good time to buy a house in Alberta?; N5 N- C+ I6 y* s' J2 o4 { {
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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."0 G+ t5 X9 Y1 _ Q. X
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.6 z( A1 Z2 C9 h
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A question about household incomes drew a score of 141, as most people expected incomes to rise.6 h2 r5 g7 `) M; w; g3 }* I' d
4 @/ N; L/ o U0 r7 h1 r2 dThe 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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, N2 q: w3 A5 H zThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.. f3 @7 t: ]1 k/ |
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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.) e3 l" s$ G: w1 S' g9 S. l
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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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( o# }: v9 S7 fBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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" N2 T q: J$ a( n) o- V"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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