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Ron Chalmers, The Edmonton Journal& Q" m& ^, d7 v$ n! T( c" H6 p, B
Published: Tuesday, April 03, 2007
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7 T' Z/ a# B' c) t0 U# J lEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.9 X a7 G5 L' K. i X/ g* X& i
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.. X% G8 R3 I5 J/ e. r
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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.4 ~0 w2 [* {8 M. E; }
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Is this a good time to buy a house in Alberta?7 l I' K$ p/ a+ X8 T( K
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No, not according to the sample's composite score of 71, showing significant doubt.
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+ y4 F' p, V8 f( w% f$ z3 [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."& B0 T$ Y( i+ S4 \& H& J3 ~) ~
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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.6 p) C" ^$ }8 b6 t' b2 c) G
" R4 c. f" W/ D6 `. CThe 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.% [! q6 \9 i# O. N9 A3 z3 p3 H( o
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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." E* X* s& \; S$ p, I. u
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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.4 q$ S- i4 d5 _/ s7 B6 p
3 \: d, E) p2 B* R) ^) Y: 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."4 W, g2 h0 A* O* H/ C% ?
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The business sample, like the consumer sample, expected interest rates to rise., d# Z( @, r0 E3 L+ @
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.! J |- D! B- `- p1 Q+ r; k
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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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