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Ron Chalmers, The Edmonton Journal$ t$ q# ^- ?6 O, W+ }& j' y
Published: Tuesday, April 03, 2007% } o! {; t) j: E% x
+ d9 p+ n$ F! N- U: X/ Q2 ]: ^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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! O/ ]8 q5 w& S. x; a$ c4 v8 q& s7 GLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.& R: Y9 n7 v7 h4 H9 z* h6 T: p
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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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, y' a' k- f0 Y. D8 T/ R) ^. [Is this a good time to buy a house in Alberta?% [ s1 P8 n x& q7 ]: t6 D" N
0 K, c2 A! o9 h0 N6 |% l' XNo, not according to the sample's composite score of 71, showing significant doubt.
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8 D) \6 _4 N5 p2 C HLeger'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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- T1 ]4 b: u4 G7 l' e1 V: I9 \% cWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.. U' z3 }$ d* z$ h6 X
" G( Y( p* Q# P/ ?* q1 B) ]# cA 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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The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.9 h1 P1 ^! D& h( H1 {- u7 {8 U
" `3 X) x+ f% m0 g' P+ 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./ l5 Z# N8 C0 \; E% L
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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."1 v3 s. V" W* A, D$ \
9 n. q) x& G! ?" w# eThe business sample, like the consumer sample, expected interest rates to rise.' q/ c2 L$ i$ g
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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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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