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Ron Chalmers, The Edmonton Journal, e% O7 Q p# c, Q
Published: Tuesday, April 03, 2007) u% c# y7 D* a& F$ g8 a+ N$ E
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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. \" {2 w( C1 E9 `4 k
1 T; p) G4 O3 L) N# k8 ^+ RLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.
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3 y6 |1 n! S# V) N. c5 eResponses 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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2 _4 n/ |4 W/ U# q7 x- `Is this a good time to buy a house in Alberta?! i1 m) H) [/ `7 W! F
$ `) @. _8 a3 v2 F% D) R& c' VNo, 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."
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When asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise." I1 \. M4 I, h- J, Y
9 Q5 q$ S2 N- ` }" sA question about household incomes drew a score of 141, as most people expected incomes to rise.# C. q4 ~/ Z$ g* g) o0 X
# n2 m7 E% I9 [/ 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.% C: P, |9 J0 E9 C7 C' d# t3 E6 {
1 o. s* Y' H3 i+ \* F r+ I( f3 hThe 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.& F. Q1 b5 w% }% o+ h8 P
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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."$ l6 g5 R. l; R
, M" y0 s2 `9 f5 k9 l' R# U% |7 ]The business sample, like the consumer sample, expected interest rates to rise.
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( ]/ Z! m# n, k X$ WBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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5 J" S K9 V3 ~& x1 U9 P/ 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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