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Ron Chalmers, The Edmonton Journal
% m# {' m# A" W3 z% T( D& A: @- L) HPublished: Tuesday, April 03, 2007
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. a+ Q" n9 H. E6 D zEDMONTON - 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.! t1 R, L3 P4 C1 n$ A5 _( m) D' Q
* g. y# \5 |5 V8 |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./ u* I* u# i/ U0 R" k+ M* Z
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Is this a good time to buy a house in Alberta?
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& m# Y9 U5 K4 n! ]6 M$ O0 ONo, not according to the sample's composite score of 71, showing significant doubt.6 ]# R1 r1 M: e# ]1 K: H0 t* 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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. J* h% T( k1 `" O, ~! u$ t0 V5 RWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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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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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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9 Y" X- h* L3 |! Q* E: k/ x |The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.) i. b% I! q, ?
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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.
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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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/ G+ ^% c: ]& g/ _6 ^ ~2 dThe business sample, like the consumer sample, expected interest rates to rise.
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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, m9 U% N m x! k+ L; c( U"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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