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Ron Chalmers, The Edmonton Journal- U) e, ~5 O9 n. \
Published: Tuesday, April 03, 2007/ S4 w1 f6 @$ V1 b3 @4 u
( C4 S& @& Z% p8 W/ OEDMONTON - 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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; Z. o& |& Y7 h1 OLeger 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.
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Is this a good time to buy a house in Alberta?2 N! H% w6 q4 b
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No, not according to the sample's composite score of 71, showing significant doubt.( g& A' u6 F: A" a0 l) y' V1 C
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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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4 z7 e; L$ r% y# G, L. ~When 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.! H2 U! Y$ o# j1 x
; A, C3 _/ {; `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 y& y0 l1 {" I% |2 I$ z1 s, r1 m1 }- H! Z
! Y, z" _( s) ]6 a* K& XThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.) f5 f5 u; g6 O) N% S" A' E
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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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% V4 ~3 k, D- Y& S5 o% DAmong 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."2 n) K& T* q- y! n0 E- M% ~( u
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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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