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Ron Chalmers, The Edmonton Journal c: X- Z) `- W5 A& j' |
Published: Tuesday, April 03, 20070 G; K5 F# ]* K K
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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.. Y5 d# `7 M) j& ?% O
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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$ ^ ?9 r1 M% R4 d9 PResponses 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?
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4 n9 R' @! u6 v% JNo, not according to the sample's composite score of 71, showing significant doubt.# |# }6 o% E/ Y- T- ~- |5 y% L( H
( `( G7 r( B' {* a9 b$ ?/ ~5 GLeger'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."4 ~5 j4 [ ^/ F$ s( |
- l# K( L; o: Y! a& ]) cWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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9 c: p5 e/ y) |. ~A question about household incomes drew a score of 141, as most people expected incomes to rise.& q+ d7 ^2 p2 J+ f/ a, G/ v5 p- N
$ g- O7 o* r9 `3 @8 R. ?2 gThe 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 |* U' R3 {* v3 L
. }* d0 r. R5 e% ]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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% r* q( m* C; ~) g9 \# UA 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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2 ^1 G6 b" a; c) `1 m2 l* `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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The business sample, like the consumer sample, expected interest rates to rise.( C; e# ] c+ y1 B# u. L. R1 }
" p% Y5 y% R* z$ J' R! IBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.* [2 z3 R0 E! w$ @) a
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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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