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Ron Chalmers, The Edmonton Journal0 M' e" F7 v) B4 [8 B6 M
Published: Tuesday, April 03, 2007! J) D' {1 Z7 B: S" |
. C# Z* P7 C& `% E ^EDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.( p) }/ P$ U1 n& ?
& I9 {( j+ W/ l5 n- ~) iLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.) C& A& t$ t/ K3 G6 k4 F
, K. T; D! w" F7 S+ E& R2 d( IResponses 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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4 o1 \$ h) ? L/ @ HIs this a good time to buy a house in Alberta?
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1 `, l8 r) |" b. X3 dNo, not according to the sample's composite score of 71, showing significant doubt. R3 z% s. s' R3 o! B2 `; G
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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."$ X: X# |/ x( v4 V$ p
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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.2 E. `7 u% t7 Q9 G9 G
7 ~4 _! s0 m, y! r' n% J7 Q6 @/ {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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' m' Q' N% N8 s8 p, O2 BThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.2 X8 W+ E# P; \% H6 e$ z) z
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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."% g5 s, _$ O3 A I$ x) `- T
, j% V- t: `$ I1 zThe business sample, like the consumer sample, expected interest rates to rise., Y" `. J7 ~$ M
1 l% K* _1 d: [$ cBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.- k" v. Q8 ]+ O/ c
& K' q0 J: z: @2 }' s"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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