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Ron Chalmers, The Edmonton Journal
3 |$ {, n" s) q$ S! ]1 wPublished: Tuesday, April 03, 20076 \; N3 R; S9 t; a
' C; [, g! N: z3 q9 w, b( iEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.. F( G! I5 @- s3 b: ~# X
( N" I& m/ k" M* i7 a$ W7 p* PLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.- L2 ^3 ]7 X5 i
0 l0 o" x) |: b8 {7 v3 b0 c* pResponses 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.# L2 M. f( K2 ]' k y& M
! G" f d6 s0 V7 b% s# n& R8 T! ~5 n3 vIs this a good time to buy a house in Alberta?+ n: y0 p9 T L( u7 O6 i+ N
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No, not according to the sample's composite score of 71, showing significant doubt.
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4 Q- ^4 P1 E2 Z/ o! b" ~0 J% _% r2 |/ YLeger'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."4 o/ T7 I- J8 T6 j, ], N$ B
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.* ^4 t' y# j, W% {' L X2 I
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A question about household incomes drew a score of 141, as most people expected incomes to rise.7 |& U0 P* E2 f9 t, d
4 [$ G% o, C( aThe 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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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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: y2 B% [0 j" ?2 y( h5 l# G7 G8 \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. f, d% X4 V5 c U3 L
( m6 _* h# _8 ` f' {7 KAmong 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."+ t ?2 M! m" o
: i& l3 a0 p9 J5 U2 k* WThe business sample, like the consumer sample, expected interest rates to rise. d5 l2 \* Z. p( y
$ n2 i3 c) K9 g, [; aBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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+ H4 L* {# p, ~& ?. j) k"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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