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Ron Chalmers, The Edmonton Journal
+ D5 I" V: O( ~- `4 x) P$ IPublished: Tuesday, April 03, 2007
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, O$ y5 m" `* T0 aEDMONTON - 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./ \$ N( O4 _* _5 f* k
# s' k( M3 o9 v5 i& A4 IResponses 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?3 r3 T( G% |. a3 Q) S# Z
* }* R9 L1 J a, FNo, not according to the sample's composite score of 71, showing significant doubt., Z r- m& B3 Q& H# Z
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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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6 o+ X( O. s9 yWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.( x# b' q- H4 N2 s3 R
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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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0 Q! K0 F1 h3 V. {1 [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.8 Y" x/ t3 M6 G/ ^7 f
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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./ T' f* ?+ T5 s& S
; ?! t+ t) t$ n% e- j* cA 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.% p7 V( m4 t4 @* L* W4 G7 i
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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."- z9 ~, {! z% O! o2 F
9 o- N0 R7 V3 V9 W3 \9 E8 n! pThe business sample, like the consumer sample, expected interest rates to rise.
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# |0 ~, ?: T- \5 \/ }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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