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Ron Chalmers, The Edmonton Journal' N: \7 ]9 o8 V% e; a( P
Published: Tuesday, April 03, 2007
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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.$ S1 Y7 V0 Y, h- a* m- q
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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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6 F3 r3 w6 @9 ]7 x( E% T0 IIs this a good time to buy a house in Alberta?" W& v: \) \5 Q; }4 U3 G* D
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No, not according to the sample's composite score of 71, showing significant doubt.: z* j, Q* E! H# r
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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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/ E3 o& b: c+ C! x/ {$ GWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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) O% {7 p# \8 {9 @A question about household incomes drew a score of 141, as most people expected incomes to rise.+ _ O$ S7 [: F# B, e
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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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7 C/ ]# Y7 _. eThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.: w7 Z! `# V; D7 P) Y
% e" p; B9 X e' v4 j& q; DA 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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5 k4 A1 Q* n5 C) CAmong 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.": Q( n E) W9 w: b
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The business sample, like the consumer sample, expected interest rates to rise.
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; @8 d5 U3 D! R" h. VBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates./ t: G! k2 J' E6 j
6 Y0 |% ?8 A- _4 }8 j/ L. }4 k"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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