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Ron Chalmers, The Edmonton Journal0 [; d/ t5 R. r
Published: Tuesday, April 03, 2007
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( O7 Y% ~8 O7 `) N% a I4 HEDMONTON - Most Albertans think this is a bad time to buy a house -- but a good time to buy major household items.- _5 a; P4 A! l4 I7 O
' Y' N( |9 K# l \5 J6 a; uLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.4 K8 d8 r W& {( f' 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.
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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.- P2 }# K% X( D, E7 x# K
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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.
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3 G0 g9 s" X$ x/ d( v0 QA question about household incomes drew a score of 141, as most people expected incomes to rise., E6 `, k: I# i ?; {
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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.( e& b* g0 ]. G) ?' _) d
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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.& x+ d( _) \( n9 l" W+ ]
6 W5 Q" i. ?7 s' c, NA 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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) t5 H4 C% d) }" Y0 \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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The 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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# `6 A4 I' M6 ^4 q( U+ a- M"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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