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Ron Chalmers, The Edmonton Journal8 ~7 W E, u, c# O, z2 T
Published: Tuesday, April 03, 20077 }7 u) C/ f& y9 \9 g
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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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7 a4 z9 ~( \$ s1 E( r* hLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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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.5 N* e, x" @9 u
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Is this a good time to buy a house in Alberta?7 W$ K; u- }. f
6 q# j {6 L( u+ }" {8 VNo, 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."
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* v0 D, `: a8 `7 X6 N. N1 {When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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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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2 ]. T( {" Z! ~0 hThe 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.+ Q; Z' r/ W5 u$ |. O
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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.
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! v' C: j o% X$ zA 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.) y$ B4 T2 M' ?. K* X
/ u3 w( \ _+ JAmong 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.", x% I5 D+ X6 s: h0 u& N
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The business sample, like the consumer sample, expected interest rates to rise.
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2 ^. ^ w% s3 ]( K6 Q, YBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.8 F: Z% m" I \$ K% i7 z' y
3 w& E! i& d# h* n1 M( J"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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