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Ron Chalmers, The Edmonton Journal- }- H% v$ {; E
Published: Tuesday, April 03, 2007
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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.
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.( v `7 A- G9 b1 A- h. D3 I- ~) k
" W2 [8 j2 w: u& X2 `1 TResponses 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.& C2 u% _% H* e% S5 y* n+ U
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Is this a good time to buy a house in Alberta?
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7 f( l- @: ~! W' wNo, not according to the sample's composite score of 71, showing significant doubt.3 e u7 \3 T$ d3 L6 W6 e5 V& v
8 F5 F, w( t9 t% F$ LLeger'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."+ V" @/ T! o* H) R
8 R# Z) x$ f; j% A! n9 o" yWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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: V; U' f' W! \5 v9 r. M% [$ jA question about household incomes drew a score of 141, as most people expected incomes to rise.
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7 W- k+ ~8 M% L- PThe 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.* ? ]- S& u9 W6 F' N4 L
% q- }1 B' [8 g7 WThe 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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9 T5 M" v$ Y8 LAmong 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."* F. }8 Q* ?. B r* j
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The business sample, like the consumer sample, expected interest rates to rise.& e3 Z' }' k; \& ~3 o
9 Z; G/ f0 U- j6 K% ~0 w% ?9 J' |4 QBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.% }4 J3 i" ^! [% Z: u
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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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