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Ron Chalmers, The Edmonton Journal
! y+ l3 Q+ b2 G! S: S9 JPublished: Tuesday, April 03, 2007
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1 I; n( V& H1 {9 X0 T* r; C; EEDMONTON - 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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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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& c0 W, T# |( K: ]$ W5 k( O2 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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1 r, ?5 A1 v* F$ l6 E$ y. }% A5 h kIs 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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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.") v4 H4 g; w6 }; x4 N. a
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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.$ i; Y T U9 J
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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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6 u/ B. r4 v- Y9 zThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower. H) k' o" ~5 w0 R( w3 j
4 H1 c! ~8 t* d F! @/ i- PA 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.. t, J( h: w0 C, I1 [( y
$ A( C: Z, v5 ^0 o" T6 B$ N+ ]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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: z# O+ i8 }. ?. P ^7 _The business sample, like the consumer sample, expected interest rates to rise.. M. r& C% C. v6 W: ?# p
( l y1 n+ M% \" H) L7 s; xBarry 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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