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Ron Chalmers, The Edmonton Journal
9 ?" X& G$ j8 N4 S$ p3 J; K3 g+ iPublished: Tuesday, April 03, 2007! m2 `% l% E& z
7 c: h+ b2 H- ]0 ^- |* h% lEDMONTON - 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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# a% c+ m4 q0 Z D+ ^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.; X, s# |3 C- x, ^0 i+ W2 o- z
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Is 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."' ?6 g: q3 M1 a( |. b
6 H3 g& n) o; P0 }" H/ R; iWhen 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.9 U# J+ q$ [$ m) z `& L; O0 A
+ J. D% i Z2 v- v" _3 z" g& kThe 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 S" c$ d1 q5 _& Z
3 b7 o' I0 ?7 A3 d2 \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."6 E, I H6 P, V2 }/ L$ Y. P7 w- Y
3 S7 X+ M0 ?3 BThe 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.
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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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