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Ron Chalmers, The Edmonton Journal# b) y2 @4 W3 U# \% O* w" @
Published: Tuesday, April 03, 2007
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+ Z5 p+ x8 }+ M9 m: k' Q! iEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items./ M/ c0 |: h+ D; L% B3 h
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.' i' G$ ~1 {+ [" I& X+ h. g3 f7 V
, q: Y5 p' `& r1 V. B- c0 J9 C+ vResponses 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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3 @( M8 M, J# {9 eIs this a good time to buy a house in Alberta? J# ]6 H5 i6 P6 K X! N. ]
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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."! q9 P' b6 F' y+ i
# ^' D5 w0 m( x2 |2 |When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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" z& N/ H. L* h: l2 q1 rA question about household incomes drew a score of 141, as most people expected incomes to rise.2 t4 W( {6 u @0 }/ _
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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.4 h+ [0 L: y6 B$ h+ a5 D" m1 A; t4 U" ]
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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.: y! M7 g" k; \9 M) G8 M
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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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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."
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3 u9 b& H$ \* X. W5 eThe business sample, like the consumer sample, expected interest rates to rise.& Z2 h; U/ [. q0 ^0 ~) V
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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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