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Ron Chalmers, The Edmonton Journal
0 P8 s% |: h4 a: {4 j* e# t( TPublished: Tuesday, April 03, 20070 @2 O& G1 [2 ]' p6 U9 q* ]3 w
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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.2 a, Z7 @3 n/ H3 M
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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% X) W5 q, O4 X/ P/ p0 @0 r) KResponses 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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/ W! L# `8 t1 T& P3 ]% F" ]" @Is this a good time to buy a house in Alberta?* ~0 i, z, }) l' e s
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No, not according to the sample's composite score of 71, showing significant doubt.+ v) ]9 C7 _8 H8 v- c5 \
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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."6 u: {5 k$ g* C
% _1 s: O; U0 }+ I$ YWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.( }. D$ P8 x, I2 t9 [
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A question about household incomes drew a score of 141, as most people expected incomes to rise.
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1 o. q2 x" \8 NThe 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.. s& ?& N1 v4 \/ d! t6 n" V* ~8 N& t- c
( q% O/ g5 _+ O B7 r( IThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.2 x/ N9 l; R: u; K; l, J
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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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/ C/ v6 t# T8 W# H. P" R1 u6 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.- D& V/ S- e- @
4 G) l/ q8 t P- b* cBarry 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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