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Ron Chalmers, The Edmonton Journal, H3 w1 P% t' n# m, l# Y
Published: Tuesday, April 03, 2007! K9 B8 ]# X% ?$ d4 N: P
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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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* a) O; n6 m! E0 X8 @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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4 f6 }. n$ f7 j _Is this a good time to buy a house in Alberta?2 J2 f$ K" D7 Z4 |/ Y6 d& R
5 J- S! V- t6 N% G5 {. zNo, not according to the sample's composite score of 71, showing significant doubt.' N+ z7 z4 q/ Y' [- y
) ^6 i c, J) v, U2 ALeger'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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$ R; M# P: S4 c5 JWhen 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., s% _% G$ O V& r; L2 A
& b- s8 [" G' o: HThe 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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# h5 @$ J% ^: g6 C" W5 @The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower., r: h2 |" q; b: c" P9 A/ _/ {3 L \
2 n$ i4 P, a# A$ C+ jA 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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0 g6 G7 P9 }7 i, y2 dAmong 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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6 c/ R9 ?+ F1 MThe business sample, like the consumer sample, expected interest rates to rise.3 a, S# o4 p4 [+ c$ I+ H' o2 ^# a' G2 u
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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( g8 N! [- A( N2 L$ Y, p+ |"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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