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Ron Chalmers, The Edmonton Journal
5 K( S/ a; t0 f- ]! |# NPublished: Tuesday, April 03, 20071 L7 f1 m2 R+ X6 R
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EDMONTON - 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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( @9 B+ G- O: F! H, `Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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& E2 ^ e$ l/ l7 @8 H4 OResponses 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.4 s$ [& v$ z/ s+ [' c
) a- L% Q2 `6 ]' s. W! I# SIs this a good time to buy a house in Alberta?7 a) ~8 b6 a6 c r% t6 D O
* b) b6 G( U# f1 y" y$ vNo, not according to the sample's composite score of 71, showing significant doubt.% y# z5 Q: X5 m( F4 g$ J7 z
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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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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.8 Q G+ l! m) Q: l
" `( E9 |* I/ h6 B/ JA 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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4 O. ?! v, J0 ?# m7 I+ a2 W, Y+ ?The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.( J+ H! }& m+ ]% N! P5 H+ \
/ _2 ]: v: C5 J! Q2 ~9 v5 OA 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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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."! |# B6 l& z+ V6 d3 W
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The business sample, like the consumer sample, expected interest rates to rise.
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5 P6 A8 U q* \$ TBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.' b$ ~4 c4 H9 m9 K- w# U
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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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