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Ron Chalmers, The Edmonton Journal# V5 j8 @6 u$ f5 O' L( g
Published: Tuesday, April 03, 2007
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) a2 t$ V+ Z! M! E$ q) _! f8 eEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.4 }* Q0 W L4 b/ f2 R' W- T* `
& F) c' I2 k5 e* @Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.' F& I( y6 Z7 g% C
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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.7 K! x# p+ F0 Z* ^& ]$ ~
: k2 h! ^- E0 {7 D: g- fLeger'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."/ v. K/ x3 r8 [/ _
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.* o- j; f$ b4 g3 o
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A question about household incomes drew a score of 141, as most people expected incomes to rise.7 l# S. A4 U6 J% ~ k( k/ n
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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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$ P) K3 @8 W. q# E6 [; z. E2 U3 ^+ ?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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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.& O) X1 g- H p( P8 y/ g0 k
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Among 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."2 j" ~8 M$ o, z# N* |$ t
9 V" P9 A$ v P) c5 M y( a2 tThe business sample, like the consumer sample, expected interest rates to rise.0 N6 a7 y* n1 E/ ~- ]6 _9 {0 p. f8 c5 N
o. a6 q& ^* E* N. q" oBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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"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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