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Ron Chalmers, The Edmonton Journal
& I& @6 F0 a+ B/ ]" TPublished: Tuesday, April 03, 2007
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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." U+ L9 {5 m* x- L8 k4 j
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy., b: r' T# C$ h5 O
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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.+ y+ Q% E3 \0 g; b5 K8 T
E) _7 P- n' x0 V. t7 C( m) JIs this a good time to buy a house in Alberta?
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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.") W+ [( l& }) M5 {
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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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4 H6 ~+ ^$ j( B2 A UA 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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1 @8 @" x3 O" b/ h, x6 aThe 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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: y6 q6 f. i1 k! k- q6 V5 IA 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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& A! T2 M8 C6 P# D& \The business sample, like the consumer sample, expected interest rates to rise.
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" k$ M- `% U* ]4 k u. `1 bBarry 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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