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Ron Chalmers, The Edmonton Journal
8 s7 j9 b( |+ V/ gPublished: Tuesday, April 03, 2007
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3 c+ P& [ \9 S, A' WEDMONTON - 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% k6 d- z% |0 E4 L, ^$ ^: f
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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.8 E) a, z0 S& M
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Is this a good time to buy a house in Alberta?
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No, not according to the sample's composite score of 71, showing significant doubt.
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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."* }- g5 c; n+ A
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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A question about household incomes drew a score of 141, as most people expected incomes to rise.
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' F- `6 [* a/ @1 n8 |1 BThe 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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& O( Q6 O( \+ q/ Z! Z0 h. j1 f' bThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.8 N }, y% N1 g( c; `4 l# t
0 a4 W/ X$ }6 [- B# j3 sA 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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; g, _! W7 f. p. \ k7 z2 zAmong 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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/ D n: w0 I1 ^+ f! bThe 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.
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# N# g3 M7 b; q- i# `"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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