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Ron Chalmers, The Edmonton Journal
$ h8 b7 m9 l: R- l! ^- GPublished: Tuesday, April 03, 2007
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0 v/ g7 u4 [6 R4 BEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items." n& Y+ `! y* t. Y, P4 T7 ?9 {# W
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Leger 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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5 I& q3 `7 q: G, J8 e/ QIs this a good time to buy a house in Alberta?; n( _! y; E3 _$ I/ [
$ \) I6 m; O3 X K" i+ XNo, not according to the sample's composite score of 71, showing significant doubt.5 A% ~: o( T) Q2 C8 q
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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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/ s1 D* T" R' T7 [0 EWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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0 E0 S U0 j) w$ e- Z' TA question about household incomes drew a score of 141, as most people expected incomes to rise. D K5 l0 M) L# {
7 y- I" ^& j5 t' ` l/ T; O9 ]! mThe 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.
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# f4 Z* R c1 i, P8 D! k% s, UThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.; T9 @" U3 B1 [: L, C: r
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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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6 b+ D# ~9 D2 R% h/ i% @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.") g7 L3 H. q W- X/ i6 t! x5 r0 f
! i% R! s+ H \9 L) \The business sample, like the consumer sample, expected interest rates to rise.5 Y- u* p8 G- N! g- I" w/ o
' z5 b% v; A. |+ X! EBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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' B b5 N9 _( V"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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