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Ron Chalmers, The Edmonton Journal1 Z$ ?; H& V! \2 P9 \+ J0 ^$ h3 ]
Published: Tuesday, April 03, 20070 g" t' n0 p1 p/ m5 h% d. @
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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.7 ?/ E0 Y F$ V/ n% m; w* ?, a% H
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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 z. W8 f$ H, o8 ]. M4 o
9 p6 b8 l% G6 i2 ~# X9 Q5 ]4 ^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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8 l5 w% ?& ?3 R$ |: ^& SLeger'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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- V5 q) u( T% c# j& ^When 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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' R& d# g9 V5 SThe 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.; z) Y" O. Y% J" M4 d7 o0 |
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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.6 v2 i- t9 q4 W! a- l5 _
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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."( w1 |1 I3 _3 a4 J% i, Y
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The business sample, like the consumer sample, expected interest rates to rise.6 Y) W% A. R' P, |+ T
9 t+ S. Z! B- @+ q" ?Barry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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" [* b) F' ^! D"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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