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Ron Chalmers, The Edmonton Journal
7 I+ R: Z% `' O$ g- kPublished: Tuesday, April 03, 20076 S# V( ^. B7 f2 [; C
& `! g9 Z% I: j, C) u" gEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.& \1 H$ r* {* W9 A
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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' N) F8 g7 y: `( DResponses 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) V% |9 k2 o
; d/ R" R9 D, v: k/ MIs this a good time to buy a house in Alberta?9 w+ s& @) W) Y7 t
9 p h9 S6 z1 n9 G) dNo, not according to the sample's composite score of 71, showing significant doubt.9 ?, ?. p, o/ O4 k) B( F# n
/ o1 o. g' @( w+ p4 o3 E8 h2 ILeger'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.0 x1 E% q4 f" }- I2 { R3 p
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A question about household incomes drew a score of 141, as most people expected incomes to rise.& T8 ?6 M. Z) U
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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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5 k G; v2 O( t3 s u5 g8 _. nThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.$ T# Z* Q1 ?1 W$ |) Y! g* y
: L, d4 C- I3 N/ s: b* C9 i# XA 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.6 N5 q. Y# p- U5 `" D8 @/ J
& C6 [8 F5 e! Y E+ B0 F: d$ jAmong 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."$ r3 h3 m x) n: `9 h. o% e3 X( [
- A( j+ o( X$ Y8 y% `The business sample, like the consumer sample, expected interest rates to rise.- K; q5 [% X: M% B5 ?2 Y& y
6 x M4 Y8 [6 A, Z3 |6 l5 F/ [9 }Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.* M" a b, x2 W7 g5 v7 \
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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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