Housing Assessments

Times Colonist, with files from Andrew Duffy
January 6, 2009

Greater Victoria homeowners have it in writing now -- their houses are worth less, especially if on the waterfront.

Property assessments are arriving in mailboxes this week, and they're using July 2007 market values instead of the usually higher ones from July 2008.

Market value for most houses slid after July 2008, so the province decided to revert to 2007 prices for assessments. For example, a Saanich house was given a market value of $517,000 in July 2008, but the 2007 value of $489,000 is being used for the 2009 assessment.

Premier Gordon Campbell gave this explanation last fall for using 2007 values: "To avoid confusion, anxiety and unnecessary assessment appeals prompted by higher-assessed property values that do not reflect current market conditions, we will lock in B.C.'s assessment rolls at 2007 assessed levels."

No one municipality in the capital region took a significant hit with this assessment, but waterfront values came down more, said Brian Hawkins, area assessor Greater Victoria.

"We found the higher-end properties and the waterfront started to drop off earlier than average housing just because waterfront and higher-end homes had a much higher increase over the last five years and came off first," he said.

The number of houses in Greater Victoria assessed at more than $1 million has hit a plateau.

Assessors valued 3,198 single-family homes at more than $1 million, up slightly from the 3,183 of last year when there was a jump from 2,516 in 2007.

There are 200 condominiums assessed in seven figures, up from the 167 last year, and 105 in 2007.

There was no change in the number of townhomes assessed at more than $1 million this year -- 109 for two years in a row, up from 73 in 2007.

Chris Markham, president of the Victoria Real Estate Board, said the market tends not to react immediately to assessment notices.

"It all depends on the motivation," he said, noting homeowners may get excited about an increase in the assessment if they are planning on selling.

"But I try not to pay any attention to assessment value at all [as an agent]," he said, noting while it may be a starting point for homeowners to set a price, agents should be looking at the location, asset and history.

Markham, who predicts the market will have a slow start in 2009, also said homeowners should expect to see assessment numbers drop a bit next year. "I would suggest [B.C. Assessment] will be watching our marketplace and have to make some adjustments next year," he said.

While the assessment gives property owners a sense of where they fit in the market, it is also used by municipalities to set tax rates in the coming months.

For the vast majority of property owners whose latest assessment falls within the average changes, there will likely be little or no increase in property tax. Those assessed well above the average change will see a higher tax rate, while those below will see a decrease.

Property owners who feel that their property assessment does not reflect market value, or who see incorrect information on their notice, should contact B.C. Assessment.

Hawkins said last year 98 per cent of property owners accepted their assessment and the authority is anticipating similar numbers this year, though homeowners are able to appeal both assessment valuations this year."

Posted for interest sake...enjoy the read.
Krista and Sherri
www.lawlessbrown.com