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Ron Chalmers, The Edmonton Journal5 z: ]7 \3 F7 u) H- f7 w
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.
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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.. }7 ?" S8 L! x
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Is this a good time to buy a house in Alberta?6 j4 U Y- j! \& h
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No, not according to the sample's composite score of 71, showing significant doubt.1 h8 k1 m/ s, @7 n+ f' [/ h
7 y# }2 k! A% h3 j/ s6 aLeger'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."5 \" r- d( d' s% N, u
7 y( {. p2 A9 T FWhen 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.0 \+ H8 c |4 i, O
/ k; u7 i1 I- G: _3 ZThe 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.5 m- R$ }% Q/ V) t
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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. O+ x" I8 P7 H& Q
4 W5 U# e/ c; o5 ~; m% lA 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.5 a$ S- A u) s! }# ]7 x
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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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