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Ron Chalmers, The Edmonton Journal: ~+ M. w3 d8 ~$ S% a3 M
Published: Tuesday, April 03, 2007
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) A' n- |. ^; S3 }' KEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.' y) u2 Q; X* M; W, Z' H- X
: x) k+ I* v4 nLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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6 \2 L6 I4 O. f7 fResponses 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 m% ^0 W7 b! i! y# b
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Is this a good time to buy a house in Alberta?
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6 j2 P6 G" z2 Q8 p7 R1 z4 KNo, not according to the sample's composite score of 71, showing significant doubt.: W% Z8 z o# K" A+ I3 u
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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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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.7 W2 n: x: J4 i( \; A( p
: k3 O2 k3 F b5 J8 V) WA question about household incomes drew a score of 141, as most people expected incomes to rise.5 V f( S2 F+ }7 H, ^2 Y6 Z+ s7 j
# E5 o! R( v5 ~2 C1 ~9 ZThe 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.+ _ K5 H; a& w7 v# c1 C
: H2 d5 P& W$ t& _+ x8 V! h. LA 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.2 t* m8 v& C `( ^! E: X' s. ^4 Q
' `# N# ]2 y7 y( i3 EAmong 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."- C6 B0 t6 _; f( P, X" I
. K* Y; Y6 U9 b3 L) F' g0 TThe business sample, like the consumer sample, expected interest rates to rise.1 Q- i1 [& j1 `" ]
7 Z k2 i# d( h4 K2 }% t' gBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.& ~7 l; ?6 `/ j6 ^- Q1 H4 R2 Z9 C+ I
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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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