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Ron Chalmers, The Edmonton Journal
. g( G, T: h+ v* a# X3 HPublished: Tuesday, April 03, 2007$ @' E7 S, r+ m8 E
. W5 z9 H* @2 {: eEDMONTON - 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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1 X0 U2 J, S1 A" r+ |; h- h% F9 r) BLeger Marketing surveyed 900 Alberta consumers for PricewaterhouseCoopers, in February, asking about the economy.& p2 X: |$ L' A& d
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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.# \+ n3 R* h* e2 g
' n: h, A; X. N) h" J p* HIs this a good time to buy a house in Alberta?/ F/ Z, C/ v6 D% Q; o9 }* p# {* O
2 J, W/ l/ A& y* r: H/ SNo, 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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. }& w9 a' Z' Q( u! G+ p9 rWhen asked specifically about interest rates, the sample scored 66, with a widely-shared belief that rates will rise.$ l7 u; k" e- v, |) D/ Y$ C9 t' j. v5 _
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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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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.
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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.+ F; h) n+ J: }) k$ y; Z7 [
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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."
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The business sample, like the consumer sample, expected interest rates to rise.
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+ H- a$ J& A0 e/ D9 dBarry 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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