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Ron Chalmers, The Edmonton Journal/ N8 d5 o8 C% n. ?8 o$ f3 N- ?1 L, @1 }
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.( B1 H; P; T! w
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.& {! D" b S' z- L! o: Q# F4 M
a8 @# D$ M2 a5 Q+ FResponses 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.+ X+ W2 D4 b% w2 G3 c6 c
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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.; U/ a$ w# a' J% [) z& U3 N0 j
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A question about household incomes drew a score of 141, as most people expected incomes to rise.
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; {- J! r' e1 N9 R+ s3 o* yThe 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.! ~1 S8 ?1 i* N# Y: B2 N
8 O$ h& S' G2 [: F% }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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" Z; `; d7 i9 x8 z" 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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$ I3 j n+ @" mThe business sample, like the consumer sample, expected interest rates to rise.
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9 Y2 ~9 {+ W9 c5 RBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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3 T, I: h5 m; f4 c"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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