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Ron Chalmers, The Edmonton Journal1 @% U/ j& f) X- ?9 w: h+ a$ y- k
Published: Tuesday, April 03, 2007: p( i: K. e( f% z( T6 g
& C% t/ ~# J2 b P' E4 tEDMONTON - 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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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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Is this a good time to buy a house in Alberta?2 ?" g# D8 `- [8 f( W0 J
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No, not according to the sample's composite score of 71, showing significant doubt./ W; m! \" ?- v6 D/ U/ P, }
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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."& ]% d! a! H; {
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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5 {! T: S$ e7 O. S0 wA question about household incomes drew a score of 141, as most people expected incomes to rise.
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2 o1 @6 \9 G: n* N! YThe 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.9 c; P) n2 T' y0 H0 i; z3 s. |
) Q" n# {; A) ~# jThe 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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3 r+ K2 K9 j& X, {1 {2 i- QA 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.! p1 [3 x6 }6 [+ w$ u
* Y8 ~1 q9 J% k% Y& aAmong 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."; @' N4 Z" z1 U- w: m3 `/ \
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The business sample, like the consumer sample, expected interest rates to rise.
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$ [% f+ h/ T% |3 |Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.+ ]3 b4 x/ y. ~
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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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