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Ron Chalmers, The Edmonton Journal {3 U2 }5 T- @0 v( o/ v8 H0 |
Published: Tuesday, April 03, 2007
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8 |. i/ B, B7 |- ^7 S* E3 H6 ZEDMONTON - 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.) B9 {- [+ E( [4 N$ U7 L( k
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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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Is this a good time to buy a house in Alberta?8 O [/ k n! l' B; s
* T/ L; L) j0 `No, not according to the sample's composite score of 71, showing significant doubt. H2 y7 q4 g! a% A+ c) V* F
! j8 m9 ]- N% i. R( P- W0 {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."$ Z, J4 `: y% }0 {& U- e, j
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.5 s# o X0 u* ]4 N" K
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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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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.& ?4 }8 `1 q! ?; i+ \) j
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The 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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! g: X) @( O2 h. c/ ^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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9 P# A$ A: o) q3 O9 g' b" s, dThe business sample, like the consumer sample, expected interest rates to rise.
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9 m7 a [5 t$ f6 t) z3 _Barry 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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