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Ron Chalmers, The Edmonton Journal3 Y2 G$ a1 j' `) c& M
Published: Tuesday, April 03, 2007, ]" E+ `( z( [7 ~
- t$ ~8 m! K ?$ K: k6 z; OEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.0 l8 J/ Z T! g, s2 A6 Q
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.' i: P, ~0 C2 r
; F; I6 x2 ]+ W! _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. C( y- {" n- R1 d, w
, {5 e8 M! W, `. \% G7 \Is this a good time to buy a house in Alberta?$ W7 T v( q/ |9 W1 V+ h
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No, not according to the sample's composite score of 71, showing significant doubt.
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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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4 p7 S9 H. I4 v4 x! Q5 L6 a* OWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.0 m9 ]3 O' w8 f) R5 k, J* Z
y8 ]* L f! n! q/ UA 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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The 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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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.2 m) o* _5 i4 H* [9 f% v
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Among 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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The business sample, like the consumer sample, expected interest rates to rise.
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.4 w% U1 ]( M* c- N! l2 a
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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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