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Ron Chalmers, The Edmonton Journal8 u! |+ e7 J$ r; z. \7 k
Published: Tuesday, April 03, 2007
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6 u/ V c9 B2 L6 b O' nEDMONTON - 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./ E0 a9 X; c" K' ]3 W
; `% g6 o' u& S HResponses 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.3 z" v9 T0 ^" ]7 H, _ z, L
4 X, i* u$ Y, S" AIs this a good time to buy a house in Alberta?8 V6 R) A. m8 Y& I
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No, not according to the sample's composite score of 71, showing significant doubt.
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6 a+ g) y a3 G: w9 c* nLeger'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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! w3 n( S/ s6 ^. w% YWhen 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.1 N* q' U9 q c3 Z7 m) Y
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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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& M5 J, u8 f3 e6 @, ]* L! J" nThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.6 }$ n- a$ l# @$ U& b" U
6 b1 k( n' D* h1 x$ `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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( Y W! I. ~% t4 E+ mAmong 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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- i2 X# [2 G+ _( K; X/ D% rThe business sample, like the consumer sample, expected interest rates to rise.
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$ Q' m4 a5 g U- l8 {" D( sBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.4 F- T, }) [# T# q4 }5 L/ U
0 F( O$ y5 |) q6 O, \4 @$ g$ b"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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