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Ron Chalmers, The Edmonton Journal
" z4 f# o( T" B5 |; X: GPublished: Tuesday, April 03, 20078 |5 W, a) {9 Z7 d9 W7 V
' q# F" ]& Z( q% X) x; Y9 d# g+ r- HEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.5 h% V C4 f: x( l' [9 v& @4 C* L
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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/ d L) h- Q4 X x1 ]" RResponses 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.
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2 n8 ]( y8 {% \Is this a good time to buy a house in Alberta?" B- K4 z- e6 B7 _. \6 y4 n8 \; B8 |
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No, not according to the sample's composite score of 71, showing significant doubt.3 `/ i0 u7 m# E( X
: v; k: Z# K& T/ r' b* j; Z/ H7 J/ g7 SLeger'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.
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4 I% e0 a* x# r- aA question about household incomes drew a score of 141, as most people expected incomes to rise." V" x+ [9 b/ k! l) j0 i$ o
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The 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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, d% X% p3 {+ r* C: a# hA 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.$ R* b& |+ t) y% i, {6 P& Y
9 T: B5 A% c, a! h3 rAmong 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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1 S2 E% ?* _2 A, |, o5 H" @Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.. H. Q7 h, \" }! d8 @/ o0 B
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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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