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Ron Chalmers, The Edmonton Journal
% N6 D- H" Y0 X1 ~$ APublished: 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.' b0 n0 D. g, L: e% S/ h7 a1 o& A
0 M. d+ m4 ]$ x. P7 ]( uLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.7 X2 u3 H' _7 W7 K) z0 ]
8 C5 M+ s; C0 TResponses 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?6 j# y, c* x7 s; s! _2 k3 V3 v
2 n0 W g& d/ p* rNo, not according to the sample's composite score of 71, showing significant doubt.
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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."( J7 l, x) |3 F1 E
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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.. _ C+ F" V$ j3 a) m% R: m6 Z
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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.
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8 J7 b! X" m, T/ Z+ L' g* ^The prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.+ I* y& G- q( z" m& g6 G0 X! e
0 ]3 h1 H( I2 G: U3 B+ AA 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.% C# k W1 C+ A5 v
; b2 r5 Z. T$ V* C; mAmong 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."" y" u8 ^& o& T8 J
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The business sample, like the consumer sample, expected interest rates to rise.
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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% O! B% L! G# F1 m, {"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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