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Ron Chalmers, The Edmonton Journal
, G9 N& S( I& i4 B7 ^+ \Published: Tuesday, April 03, 2007. h* Z9 k: ^: } o: 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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a0 d: ~/ [& q7 D8 f* L- H8 _Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.3 H, C" I0 l% b
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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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No, not according to the sample's composite score of 71, showing significant doubt.0 j( v# n4 S* w5 p# Z, t- u( J
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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.": g C9 G3 O6 _9 d( X6 I# @
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.) c' w7 h+ u5 U0 c( H4 [
' ?% I' V) z1 t/ N: c$ VA question about household incomes drew a score of 141, as most people expected incomes to rise.
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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.7 S8 V3 f5 x; o7 u, @
' E _6 _* K; K& \" \* Z. @/ eThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.; e4 P( S' Z- ~# e' i$ R* s/ X
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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.
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- s4 [8 b( d! L$ B2 y2 W4 k3 lAmong 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.". W) r( C' l1 H% [, O( B
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The business sample, like the consumer sample, expected interest rates to rise.
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0 Y* }9 E' k Q7 d( F3 ]/ @1 zBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.! x" F3 S* a% L/ D, X- t. G! J7 x1 T
/ Q; z; b5 i0 `: s+ m$ P"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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