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Ron Chalmers, The Edmonton Journal! d" u$ O5 ~# t1 X
Published: Tuesday, April 03, 2007& B# k. e0 [3 J) L( h- c7 h# `
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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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$ v# L) A+ |- `9 ^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." Q1 F8 W2 }! I
' t7 x9 E; p% _8 X% AIs this a good time to buy a house in Alberta?
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. s% I" e7 ~) A* eNo, 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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0 j. O! R% p9 \& K& j5 c% kWhen 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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D9 o7 A* j2 {9 v2 V4 m/ `; UThe 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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2 Q; y) }% x/ {" R Z8 kThe 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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) m$ \8 w! S1 P+ {3 D# |" fA 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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7 G y$ ^, D8 L) o9 B% IAmong 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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. z6 N9 Y1 x: a# PThe business sample, like the consumer sample, expected interest rates to rise.
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" M2 x. B: @$ l% U, U, x* g6 Z" FBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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- S: M! A5 c7 y"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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