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Ron Chalmers, The Edmonton Journal
% M: v/ _: C; E2 _2 t) W9 }6 i! R' i! gPublished: Tuesday, April 03, 2007
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5 a; v# K) m. ~/ c. `+ r* t# 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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8 W% _% q% E* f7 y: SLeger 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.0 c2 q+ P; z; ?! M
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Is this a good time to buy a house in Alberta?
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+ m; r! R l/ P. z! WNo, not according to the sample's composite score of 71, showing significant doubt.
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3 _+ ]) @ I" A2 kLeger'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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5 N* L' ?6 s7 j' ~' jWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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$ i! a& M& X$ G. U/ zA question about household incomes drew a score of 141, as most people expected incomes to rise.
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# D F7 h$ h3 U6 J/ p4 nThe 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." j9 s+ e; O5 i( S( Q
* n, p9 |( I! j$ f4 UThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.2 m: H/ D3 H2 F' C0 ?9 X: ~8 s* Q
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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.6 k& r3 u) p; A. f' R/ W
! w/ m' g0 O+ LAmong 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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1 ~9 N. R3 q) [0 D G4 rThe 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.5 `9 L% ^1 S4 M% j( _* g5 o0 U
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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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