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Ron Chalmers, The Edmonton Journal7 j; ~% {; F, A2 B% e5 F# T3 s
Published: Tuesday, April 03, 2007- J+ F, Z1 s2 T& v/ h2 E; V3 B
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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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! w- S' \' c* w. w" rLeger 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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9 d" i# f& S! W0 A$ Z9 lIs this a good time to buy a house in Alberta? m# f3 z0 ]: w" k0 Q& {/ [
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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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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.1 v9 C1 Q" e( T V7 z# q
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A question about household incomes drew a score of 141, as most people expected incomes to rise.: f! t( y& c; U& d1 S# l: q) ?
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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.) R# c G! E8 L s$ Z8 G
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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.
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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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# H1 y( B0 M' RThe business sample, like the consumer sample, expected interest rates to rise.! y5 P8 A! z! Q. W
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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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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