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Ron Chalmers, The Edmonton Journal
. h( X. L5 T! i- G( V: I7 k0 oPublished: Tuesday, April 03, 2007
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/ k& r. y3 T& \: jEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items., S: l/ _0 m, t* h6 Y% J: t0 S
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.) t) w l$ c1 k" P
9 Z7 R; N/ X9 C8 N& e. m! g) GResponses 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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/ E: a5 A! b+ K; C' FIs this a good time to buy a house in Alberta?7 h" J! b, b: O* \
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No, not according to the sample's composite score of 71, showing significant doubt.' Y, ^+ s3 f9 m* P6 a3 k3 l
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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."8 o) \" ?# D2 k5 n
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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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A question about household incomes drew a score of 141, as most people expected incomes to rise.: G s' ^3 }! w8 h M3 K
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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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' ^3 U, K# E/ `5 k8 V- oThe 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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# c' q: Y K0 {8 G: E! D) ^! UA 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.; V+ l9 X2 c x, f6 @; P
* l; l5 @$ Z) o( m# {9 u' v4 XAmong 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.2 }) Y9 A t6 \; y
- R% K2 C! b/ j- n4 _Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.4 q4 \) \4 I. V: u
+ w6 B- I5 p3 y( ?"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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