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Ron Chalmers, The Edmonton Journal
2 `' w% w7 Q# K. I. W. sPublished: Tuesday, April 03, 2007
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3 y& R# b) s& L$ e. f; V, s. @6 aEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.9 ]" L0 ?2 \, _2 o% R! x2 S
; D2 l$ {4 T! t! yLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.+ R, ^/ Z( S$ R0 p7 ~
2 h3 P7 i- X1 o: u/ pResponses 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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9 { o8 I7 o$ ]( yIs this a good time to buy a house in Alberta?( O' c. ] _3 u8 A
3 b! d# q! ?0 p% H, H( kNo, not according to the sample's composite score of 71, showing significant doubt.7 i2 }% i6 m1 y* J- n
% p( w- k2 q9 g T' QLeger'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.; x5 \* N8 {% ]( B3 j
7 P( w% X6 b/ y/ mA question about household incomes drew a score of 141, as most people expected incomes to rise.
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0 }. }: [# u( t& q" G9 EThe 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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! n3 g' G; ?( f4 n/ r$ ~! BThe 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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# B0 @# m# p0 P) M( l: K6 DThe 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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; t$ I: c+ R. g"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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