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Ron Chalmers, The Edmonton Journal
2 M5 z, J; ]; E. o/ Q& \; ZPublished: Tuesday, April 03, 2007
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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.6 _$ n8 o4 ]- ~) {& q9 U( N
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.' T6 G6 Z( P6 w4 a% \
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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?
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" M/ ^7 e& K3 a& c% o8 u" K. cNo, not according to the sample's composite score of 71, showing significant doubt.
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7 O7 Z% y0 g% 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.$ G; G" H: G( W ?; 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.! r+ k9 c& D8 w9 I+ e( e. ]
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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.1 i- U4 K3 @" _, d5 p% y5 p5 U# ~
- J, ]' h) T+ iA 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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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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c% T- \$ X T1 SThe business sample, like the consumer sample, expected interest rates to rise.9 Z8 P. S. u8 z+ R
8 ^4 D y8 T$ O& a' Z; ?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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