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Ron Chalmers, The Edmonton Journal6 m: ~! x. O6 ^
Published: Tuesday, April 03, 20074 B: X' F1 u( D
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EDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items." [- D& f/ w g. a; a; f
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.! G1 t3 x# s: p; x
, p, k- U0 {2 b3 @ {9 E1 hResponses 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.
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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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2 k* ` f3 f* @; b0 SWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.- \: y3 N. d8 M% Q1 M8 x+ V
( D# A- s9 X3 t* S4 w2 `8 FA question about household incomes drew a score of 141, as most people expected incomes to rise.
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8 X, P$ S% I% k9 U( \, jThe 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.% m* j- v1 w, I
9 J- D: f) {0 Y% q3 DThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.
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; b0 M/ E# T9 w {+ G5 m; D* xA 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."% H$ O3 q) Z& Y- w3 o/ w. d
0 z$ x; N; e& }# K$ X, D* v0 g9 vThe 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.) ]! p3 l# ~2 O3 u1 b& F0 m' r6 z
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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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