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Ron Chalmers, The Edmonton Journal
: q. ~1 u) K ?$ c qPublished: 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./ `0 Q' g1 }8 c3 h) G; I2 k
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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7 O2 O6 }$ }6 d6 `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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{/ V- a0 g1 J$ H5 NIs this a good time to buy a house in Alberta?
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. P1 ?( T8 U8 j, yNo, not according to the sample's composite score of 71, showing significant doubt.- H& Z' t5 C( {) [+ Q V
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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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?- j* M% _: J6 ~- O v# _. x8 _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. R4 Y: m; ~) l( h
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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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9 z6 q) X5 D% _, t0 `The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.# ^$ p2 a' t& i3 p) O# v; [
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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.7 c! u! C- D* j) v
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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."
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$ ]) C6 m/ P2 @; k/ _& EThe business sample, like the consumer sample, expected interest rates to rise.
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! W& U9 F7 e4 ~. aBarry 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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