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Ron Chalmers, The Edmonton Journal
1 U7 R, I+ k& Z# {2 L; l" q$ c iPublished: Tuesday, April 03, 2007+ ]2 L5 C) u6 L3 S/ V. S
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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., G/ B/ H$ A0 q6 S" E
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy. W& r7 a3 {6 G: k8 S
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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 n* v2 S5 |/ h0 n
$ c- [0 L% t7 dIs this a good time to buy a house in Alberta?3 }6 p/ T# K" X; w# g
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No, not according to the sample's composite score of 71, showing significant doubt.
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Y$ B, H3 h% l2 v fLeger'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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' @( f2 N8 Z' PWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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- q1 f( Y5 v1 `, pA question about household incomes drew a score of 141, as most people expected incomes to rise.
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7 K1 o4 @! k3 H 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.+ _/ Y4 A, a1 U- f9 q+ u4 m8 J
n7 q. {6 N0 X3 MThe 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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The 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.8 j0 X/ V, o, Y9 c0 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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