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Ron Chalmers, The Edmonton Journal/ P1 f' x8 C) Q: ?9 Y
Published: Tuesday, April 03, 2007# U7 X$ F8 ?5 u+ k. r& L, F1 N
; q \# w. a/ t& ?1 R% Q" D5 P& ZEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.2 d. C: P6 v. k" b3 X
4 M/ |: M6 e6 s, F0 RLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.$ Z4 e3 w2 O, U+ A
0 _* c$ `( H- j/ R! ]0 O \) P3 z: @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.! J( t* D% D6 V* J1 L0 i0 g
6 u' C$ ^: H0 RIs this a good time to buy a house in Alberta?, w C* D% o5 j
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No, not according to the sample's composite score of 71, showing significant doubt.3 Z2 Z; M4 I' h2 a2 e
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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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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.9 y( Q a/ g7 r' l! I
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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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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.- d- e6 \. x0 f* X- [# e
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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.# c" F Z& n8 ~# U8 l) N
+ ]1 L7 O1 |; h6 \( eA 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.+ l, a+ [% |; S6 o: z; h' 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."
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The business sample, like the consumer sample, expected interest rates to rise.. u* F2 y0 T$ @
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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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