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Ron Chalmers, The Edmonton Journal
3 j% a2 @0 W8 \# UPublished: Tuesday, April 03, 2007; Q. x4 d3 }" m/ g) d
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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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Leger 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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& _$ b# U; n# TIs this a good time to buy a house in Alberta?
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3 V( B' L: x, g/ M& C& ANo, not according to the sample's composite score of 71, showing significant doubt.
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' A) Z2 O. }: P; K& ULeger'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( f) ~9 j. [4 _
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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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; e+ ^! k6 n4 S* J8 vA question about household incomes drew a score of 141, as most people expected incomes to rise.% `9 r7 c0 J9 N
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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.8 s+ o. A! k8 F$ }
2 `" S8 K! \7 h/ Q# C6 S: 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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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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1 F% M- I5 x, r- mAmong 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.. ^( h2 S* z* u! [
, W7 L% a" r, ?9 EBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates. j8 P8 U/ g/ A% z2 Z9 c/ Z, D( T
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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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