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Ron Chalmers, The Edmonton Journal
W' I# z* u! _; C5 Y' o! FPublished: Tuesday, April 03, 2007/ `7 b- {) ~; P, P) K5 |% c. w
% L) Y; j) J6 ?) X% F) zEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items. b6 }& s @6 {2 \' L
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.. r3 b8 C* t7 b8 y0 Q
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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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' T/ J! L( N4 f! A5 eIs this a good time to buy a house in Alberta?
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7 w* e5 e' a: E" v2 e/ j% d# LNo, not according to the sample's composite score of 71, showing significant doubt.) D) J2 J5 u1 _9 r
. q0 T) H" m y) E" DLeger'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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* a6 n. R/ \+ u! Y5 GWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.- ~+ w3 g: \& z3 e# l
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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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8 f" J% u+ B( B* p# j9 IThe 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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4 [/ w; x, ~5 TThe 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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; g9 K, Z& g8 W: O% h3 nA 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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) G6 G" ]: E; r* u, N2 uAmong 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."- k0 G; Q" Q U1 Z2 H
( A ^: p- G" ?+ t0 S! {; q) L' hThe business sample, like the consumer sample, expected interest rates to rise.
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8 J$ P# [, U. C z5 eBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.! D" D" ]- Q/ n% f& A% L+ b
/ y. F3 q' [- H8 z) |! [9 C- c1 J"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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