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Ron Chalmers, The Edmonton Journal/ t4 D2 L1 B2 |( D
Published: Tuesday, April 03, 2007
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6 k0 p; w% ]( ^8 \2 D$ HEDMONTON - 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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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy. `# a. p/ q) C( _) @$ f% W
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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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No, not according to the sample's composite score of 71, showing significant doubt. G6 E" y) _5 P1 w/ \& k
8 D2 z9 a. d0 Z OLeger'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.") j: W2 |6 q- k3 b+ Q" e/ C9 @
& n+ u5 L$ g; U' IWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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/ q& V2 l$ [/ I6 p) U6 p. MA question about household incomes drew a score of 141, as most people expected incomes to rise.
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* }8 p* G$ v$ W0 p5 g K6 pThe 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.9 s; U, |) p5 N. s- P
7 u. M; l7 |$ d6 @The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.5 x0 {, ]+ a, P0 V7 P
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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.
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8 V5 R1 k$ P3 Z9 S' p y9 _+ H" n, mAmong 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."3 V _6 s# U+ t' s2 w/ M
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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.
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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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