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Ron Chalmers, The Edmonton Journal' K5 e; k8 }+ D& q& P
Published: 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.
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.: a7 g+ y- d4 Q5 Q; C3 o
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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.' z# o# O M4 E
9 m. ~5 j. Q/ g- \* P# R! U5 BIs this a good time to buy a house in Alberta?
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No, 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." E, {8 w- u) ]
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.( \: n, w2 E9 {+ Q; r: n
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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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: D; o+ a$ s1 [3 RThe 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.# V2 M# ^/ @$ P$ W+ C( W
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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.' C9 ~3 [$ [- {- ^
6 [* E- ~! u& q) k6 a& \" ~: |& UBarry 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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