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Ron Chalmers, The Edmonton Journal8 p: E6 _2 |2 w" @" r
Published: Tuesday, April 03, 20070 a% s v) z. { y7 o7 k9 f0 _9 i
8 `3 ?4 |* D, sEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.6 Q( u) b2 T. `! ^0 C2 ~7 [
+ \7 P4 p, a; I( q+ mLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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7 \: K, Y& p# {* E: oResponses 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.+ z9 ?' i3 f, _7 d
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Is 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."# p# q3 H B: F4 b
3 _3 |2 h {( A# Y& w8 `& a! tWhen 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.
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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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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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; q& |) W+ X s8 f$ R! m0 KA 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.3 n9 E, k1 o. M% ~1 S* M1 A' y
5 l& `* N. K! h0 Y, p R. OAmong 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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" ~, d$ c9 ]4 ?- VThe business sample, like the consumer sample, expected interest rates to rise.4 o! P* _/ N: c8 }% `" C
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Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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* P2 l- R* w# Q. v* }) W"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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