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Ron Chalmers, The Edmonton Journal" L* |9 S9 T" U( w2 Q
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.: z0 x+ X) N4 n- x- ~* F
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.- s" b! E3 D& {9 w: |
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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.
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Is this a good time to buy a house in Alberta?
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: K C! X: A4 g/ rNo, not according to the sample's composite score of 71, showing significant doubt.& D* U' u) B1 ~5 `" w
6 G# L7 N9 O. {2 |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."/ X6 z) |0 H9 s5 N% O" y9 I% j
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.' n' D5 j5 V$ C) P& z
! ]9 f7 `# j' N3 {9 b3 M0 u# ]A question about household incomes drew a score of 141, as most people expected incomes to rise.6 I) `. n O4 h- ?) }; ~# |5 d
4 m7 h* j" }) A0 z& q4 kThe 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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I5 G8 C9 P+ y: l! t, X( V" DThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower., n" N; Q: d4 X" ]3 w0 b
3 _4 K5 T* y+ X$ G n7 Q5 U9 f. FA 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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5 P! [5 A. y+ QAmong 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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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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. p+ r2 f3 p! d" ~' H+ i" N"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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