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Ron Chalmers, The Edmonton Journal+ M# f4 G, Y; Y* O
Published: Tuesday, April 03, 2007
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) h- ^8 r, z' E2 K: MEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.+ |1 F/ y5 }+ `3 d) k
9 v2 H- i3 F; f0 d6 G2 TLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.* o5 s8 m8 S$ k4 F" [7 R3 D
( p4 M- v$ P, {" ZResponses 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? e* w" a2 W' k4 @4 L1 F }
|% I# b& m5 C8 X7 ENo, not according to the sample's composite score of 71, showing significant doubt.3 C4 o3 j: b8 g1 p& N G
4 _+ c$ b/ D' X; J% uLeger'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."" E* T8 Y3 _2 h% D" h B
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.& \! w! e n: T! z
5 M; V; E. s; qA question about household incomes drew a score of 141, as most people expected incomes to rise.& g- ]; o6 Y: V' X
1 U t% Z0 v/ n" b. z$ WThe 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.1 ^6 y I( ?6 q
4 n3 C- Z, x0 a: y4 GThe 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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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.; V+ w+ Q+ x! w' a0 P. s# b! _
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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.% d7 ~8 y9 ?& `" g* K# H& D: A! ]; r) O
( t( z% N1 I( a3 B& f _% rBarry 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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