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Ron Chalmers, The Edmonton Journal4 Q, @# k7 y% F: C
Published: Tuesday, April 03, 20070 |) [5 l# l. }$ E
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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.: r) J: G. D3 s6 H6 Y0 V7 _4 C3 f# N
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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& Z0 i/ R0 r. Y! K4 |+ PResponses 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?+ F, }0 f; B; W2 R
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No, not according to the sample's composite score of 71, showing significant doubt.1 F* M* f+ ^5 e0 L. d1 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.& W( R- p: u# W7 P$ b9 r
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A question about household incomes drew a score of 141, as most people expected incomes to rise.9 W9 q% D' t% m& Q
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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.- z9 X( u1 C K; F: ~4 G1 R* x
& X# X6 u$ q, ^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."1 w; _( B* |! t, ?9 C
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The business sample, like the consumer sample, expected interest rates to rise.
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates., G9 p; A8 D0 X4 z; O
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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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