How B.C. Assessment Will Affect My Property Value?
How did the Market Do in Recent Years?
As almost all Vancouverites experienced closely, there has been a crazy couple of years between 2014 and 2017. The house prices and rents were soaring. The houses were selling mostly above their listing prices. Open houses were like community events with fierce competition to purchase.
Everyone had different ideas on the reason for this substantial growth, but the government had to take action to protect the community by making the market more stable.
Then came a couple of regulations to slow down the market by controlling the supply and demand.
First, the extra tax for non-resident buyers was announced(currently 20%). Then the stress test on mortgage loans(resulting in lower mortgage loans), followed by the empty home tax for people buying a property but not living in it.
All aimed to decrease the demand and increase the housing supply.
Slow Down of the Market
As a result of these actions, the increase in the house prices stopped, and there has been a slight decrease in the market values since then as the supply was more than the demand from the buyers.
Of course, there were regions and communities where the prices kept their momentum, but overall, we experienced a “buyers market” where the prices dropped at different levels.
New BC Assessments (2020)
Now that the new BC Assessment values are available, many people see a decrease in their property values. This drop-down is a result of the last couple of years’ market trends, and now they are reflected in the assessments.
The typical value of a single-family home is dropped by 11% in Vancouver. In the Greater Vancouver area, almost all cities experienced this or similar decreases.
While the assessments showed a decrease in all the Metro Vancouver area, the other parts of BC still see increases in property values.
You may find your BC Assessment values HERE.
Are These Values Current and How Will That Affect My Property Value?
The assessments reflect the July 2019 market value figures. In the second half of the year, we have seen some improvements in the property prices. So, these assessment values may reflect a lower number than what your property currently has.
A lot of factors affect the value of your property. Such as expected return from the property, current and future developments in your area, and so on.
The best way to understand the value and the potential price of your property is by talking to your realtor and asking for a current assessment.
How About My Taxes?
BC assessment values do not directly define your tax amounts. Each municipality works individually based on their expenses and overall budget to decide the tax you would need to pay for that year. If your property value drops more than other in your building and region, you may expect a tax decrease for your unit though.