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Ron Chalmers, The Edmonton Journal. m0 A2 z! f" W1 f% ^' [7 K! v
Published: Tuesday, April 03, 2007, U9 Z4 g5 |! `4 l# p2 n: ]$ {3 a
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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.7 {- d7 W8 P% _4 P
. {- r% Q/ A4 q7 k# P! R5 h& ELeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.1 ^2 ]- H" ~$ u) H
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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.
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Is this a good time to buy a house in Alberta?
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@/ I* K7 V9 L3 w# ]2 Y1 HNo, 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."
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.( B/ o! z' k! S* L2 l* P/ E
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A question about household incomes drew a score of 141, as most people expected incomes to rise.$ G6 W/ ^3 J0 d3 z$ J6 `* s+ n6 g
+ c Y' _1 E5 L& v+ _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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9 l$ D, g, a/ s$ f) XThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.' f1 | S q; Y( a4 o* K
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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.# f0 d& ~/ a9 f% x7 c
7 \, m8 r2 Y8 B8 U! |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.": S1 \5 l9 A* B" s" c" X. C- C
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The business sample, like the consumer sample, expected interest rates to rise.
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/ O8 @7 f" h3 I. oBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.8 l3 `7 \' k8 ?/ `
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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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