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Ron Chalmers, The Edmonton Journal8 m' T }# r" w4 Q' Y9 U7 f" @
Published: Tuesday, April 03, 2007" x7 j& j+ o1 Q1 H0 b2 c k, i
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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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5 X! r6 q z7 kLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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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.( t9 b/ a$ Z6 G- X5 E
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Is this a good time to buy a house in Alberta?
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/ ?! ?/ X8 A; d; s0 `% A' Z* u8 M) MNo, not according to the sample's composite score of 71, showing significant doubt.- p$ C) o& g& G; X
# Y* W+ @$ k; L# Y' s, f- ZLeger'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.
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A question about household incomes drew a score of 141, as most people expected incomes to rise.+ j% r' V. B0 r1 Y5 w' U8 K
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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, P( Q* u) O4 G
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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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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.( Q2 F" ]5 y6 ]% f4 C
) ]! t0 r! l5 ?9 |3 w/ ~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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