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Ron Chalmers, The Edmonton Journal' H+ F3 E' |' ]3 l4 D
Published: Tuesday, April 03, 2007
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?* C1 O/ l0 G8 M+ R' eEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.5 l6 p1 T' X: ?7 F0 D
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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7 E C( f* C; x: N+ E$ ?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.& M9 N* B9 s: \7 d5 m+ [: ^
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Is this a good time to buy a house in Alberta?, v4 E) ?* c( g+ a7 O
4 o: Z/ W G$ x* L! Z, {" u3 uNo, 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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+ s% J$ |' N' u% ~! IWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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0 r( }/ L; M5 ~! p% i/ ?A question about household incomes drew a score of 141, as most people expected incomes to rise.7 O" |8 u _, K9 @
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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.( l' S' Y3 N5 Q$ M' e
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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.
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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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2 K- f$ Z7 }. u& CThe business sample, like the consumer sample, expected interest rates to rise.$ U0 V! f% u3 C, }5 `
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.0 I6 V; D* k+ w3 K, _' B+ m
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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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