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Ron Chalmers, The Edmonton Journal# M. W0 n- k: n- L4 t/ k' @: r
Published: Tuesday, April 03, 2007" f/ d5 U; ^+ g; X
P7 H5 Y6 B& w! CEDMONTON - 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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. z* s m' |: o+ OResponses 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.2 R2 D2 S" J% B+ U) f- ?. i, |
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Is this a good time to buy a house in Alberta?6 T( ?% {1 f' v; d$ |
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No, not according to the sample's composite score of 71, showing significant doubt.: E4 B4 N0 R; B5 h% y
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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.' S: Y, R g" p
) n) U6 G5 J" P6 e6 jA question about household incomes drew a score of 141, as most people expected incomes to rise.
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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.& O& Y# K# @6 z7 Y8 X2 r
. _, ~* {0 u# N$ F3 d, [- qThe prospect for future unemployment was highly optimistic at 127 -- although it's hard to imagine how unemployment could fall any lower.' F6 ?; `. j u5 r$ `+ R
8 j: C9 f/ i4 U5 u1 oA 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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U* h; V/ w. J$ a: [2 pAmong 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.8 ~! Z# z1 D; E, o8 m K3 a
8 w/ M& A( r3 z8 Y' ^/ i/ HBarry James, PricewaterhouseCoopers' managing partner in Edmonton, urged borrowers to consider the risk of higher rates.
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"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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