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Ron Chalmers, The Edmonton Journal2 O1 i- K8 G. D: E. N
Published: Tuesday, April 03, 2007( d; c" w; j" I* f9 ]* F
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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.+ ?8 Y: p/ I# @. O9 i$ m
# v$ ?$ `# K! w/ zLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.5 X: r- t# |& y
8 y0 L' `3 {# ^1 y7 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.+ r' f1 [; F1 B: D
) S) p7 C! x" |! z, w6 AIs 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.8 [! h; |/ w$ M9 j7 x0 a, H
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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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; N8 k. t& ^ o) r0 iWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.' ?( c! S% k0 }( { Q
& M; r% k2 {7 m" u* ZA question about household incomes drew a score of 141, as most people expected incomes to rise.. x- x5 L$ d% D* I7 `
, ^& S$ I: a/ vThe 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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0 j! l: R# N1 V @" T0 b9 KThe 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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4 R% r" z2 u4 q; a RA 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.
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0 h) V$ i! D5 H/ {( t6 K; VAmong 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."+ J+ } g2 C+ b
2 _1 P; c0 y& o# @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.
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0 [; N9 u$ \2 [6 w, Q7 M"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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