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Ron Chalmers, The Edmonton Journal
2 [" H2 g+ X6 K1 |. V- lPublished: Tuesday, April 03, 20078 m7 I6 w( I; [8 Z
$ D( U; H' ~* [" D1 V0 [EDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.7 O7 J$ a7 R. _0 F8 w$ s0 J
. i5 ~- v8 s$ H9 M! f( HLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.: X0 G( k' O3 w1 i5 q
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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.
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Is this a good time to buy a house in Alberta?1 w% v; S8 h& m( ~/ Z2 X$ A
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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."
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' g2 |/ Z% V# _; NWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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2 H$ r% r5 t: j2 `0 AA question about household incomes drew a score of 141, as most people expected incomes to rise.
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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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4 F& p( R* x0 f$ E& W( \$ gThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.9 o3 b2 D( r6 m8 N2 V" }
( o. }- }7 g. w8 {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.# ~9 D6 }# Y0 ^. Q3 o
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Among 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."/ `/ N9 _' {/ I+ O: s
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The business sample, like the consumer sample, expected interest rates to rise.
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2 H/ @& v) D4 T% t$ w# {% v- tBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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" L- y* f; w, u' u3 n"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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