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Ron Chalmers, The Edmonton Journal
7 Y4 P/ y# d7 {) Q3 o! y3 wPublished: Tuesday, April 03, 20071 k( Q! d, S7 x6 r8 y0 A! ^8 ]
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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.0 L& d* H. Y. H: B5 q1 y' I
" d' Q! R0 i! CLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.6 ?: _6 R* W1 j& Z% i1 n# Z& n. Z
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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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2 r5 B7 p% e5 B% XIs this a good time to buy a house in Alberta?& r9 w3 n: G, N Q0 e) |2 V7 M' {: U
9 e+ A) l( F) E0 r& z, A4 dNo, not according to the sample's composite score of 71, showing significant doubt.$ h: I" l# o/ @$ h- Y! ]3 N% \1 t q
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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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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.! I8 P7 h# |2 v; v" v: T
2 E5 j" T& A# H0 i$ ~9 y+ y, UA question about household incomes drew a score of 141, as most people expected incomes to rise.. D% O e$ Q9 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.( q) z/ g0 h. z7 A. D; x- a
" K) n) G& a! k; z$ [/ _$ c, nA 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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! D% a/ H. M# L. ?* cAmong 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."+ ^" Z) W8 K$ V
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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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1 G0 z3 \; x- D2 E* F"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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