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Ron Chalmers, The Edmonton Journal- A4 [4 S. l0 y' V* G
Published: Tuesday, April 03, 2007
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( M' E0 ?: b) {/ C# yEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.2 K% Y. t, [/ Y6 H Y2 q
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Leger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.# U) {7 q v* A2 i4 `9 v: P6 `
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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.4 Q7 ]- O3 ]" z; m( q7 g
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Is this a good time to buy a house in Alberta?2 [3 e. M, ^6 i
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No, not according to the sample's composite score of 71, showing significant doubt.
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: @7 {1 B- t @2 A$ |2 Y3 W1 z* B, rLeger'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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1 T: j, ~- j0 b' [3 YWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.
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6 u1 [) Q, @1 Y8 w; {. e$ VA question about household incomes drew a score of 141, as most people expected incomes to rise.- o* |) j4 c5 e0 `* A
2 M5 W4 u* r4 `- H6 C- m) t# }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.2 p: v$ R# G7 R' M$ 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.
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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.* ?1 i- @9 r5 {' D, t, g
^5 V6 P- E# E" `4 xAmong 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."- A9 L! P) w. C; p a) [
( z2 q" M3 Z9 S5 T% jThe business sample, like the consumer sample, expected interest rates to rise.
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6 d8 S. M! A2 B5 C3 y1 JBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.3 O* g8 G" p5 K5 t5 R8 g
6 t7 @: i" g5 y; B& R"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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