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Ron Chalmers, The Edmonton Journal
* n7 R8 H7 \+ G# C+ uPublished: 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.7 @% g9 ~7 T p9 a ^" \
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Leger 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.
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" L: Z) L$ _6 }! o4 o0 DIs 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.
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r2 W2 b3 P( N9 LLeger'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."* ?; W% k& j6 D* T/ F3 H3 k
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise., J; t8 O: c) u7 t9 f! F( D
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A question about household incomes drew a score of 141, as most people expected incomes to rise.- n5 l' f+ }, E _/ _& G1 w+ O) C
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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.
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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.9 ?6 f, z# a/ ~! K H' ~) e0 t2 G
! P" C4 M- Y. ]( Y: {' PAmong 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."9 L& ^6 r6 L2 D8 a& i w4 F' p; W
H8 B( k" T1 g! M8 w3 GThe business sample, like the consumer sample, expected interest rates to rise.1 m; i% _! r3 c+ J+ L) \5 ?& F
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Barry 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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