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Ron Chalmers, The Edmonton Journal6 }* m0 P4 `2 f8 S4 l9 z+ |2 p; R( N
Published: Tuesday, April 03, 2007+ l9 p8 B" p" b: H/ O: x! B
3 G( j1 h1 Q Y. m: p! G3 d8 vEDMONTON - 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.
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4 p% W" Y; d" x/ k" _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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! Q! e% p2 D7 PIs this a good time to buy a house in Alberta?9 Z; W" E8 V9 t: Q4 ^
- U- j/ Y6 m4 O0 R# W) n" @/ J9 LNo, not according to the sample's composite score of 71, showing significant doubt.+ A* q o- u8 h2 f
0 E+ r5 q: l- u) v, qLeger'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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+ O3 K4 ~& Q+ zWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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+ K2 [% L: f4 u0 q) }( F' g, ^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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- d# u7 N, n$ h, h% Z0 Z2 NThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.6 s* p5 U% k$ c, P4 L4 y! s& O
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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.# {& ~" y5 O& m
0 ]2 y1 J/ X' fAmong 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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; h9 Y9 o& l! {/ h& f" [The business sample, like the consumer sample, expected interest rates to rise.% T- A2 n' u1 t4 a9 @- A
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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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