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Ron Chalmers, The Edmonton Journal% X8 T0 V6 L4 d/ O7 |2 c
Published: Tuesday, April 03, 2007( d) ~0 V; b/ e; C
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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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2 t7 T! S4 v8 r7 y0 z) c! F( t& ^Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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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?
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No, not according to the sample's composite score of 71, showing significant doubt. I$ s# c& A! d2 U
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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.". M; C2 _1 t; y0 ^; c4 h
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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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+ U: a1 `6 {6 W0 P! H( {5 l8 FA question about household incomes drew a score of 141, as most people expected incomes to rise.7 Q$ a3 t1 w1 q( B+ ~' V
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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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# Y0 r* [2 _3 I' a; lA 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.' x, Y5 ?0 D4 E/ 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."
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The business sample, like the consumer sample, expected interest rates to rise.% h) w, i+ Y5 p
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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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