(Canadian Press photo)

B.C. VIEWS: Magnetic interest in latest property prices

In recent years, property owners have pored over assessments much more closely

The thorny issue of property assessments gets plenty of attention at this time of year, when B.C. Assessment Authority sends out its yearly estimate of what each property in the province is worth.

In recent years, property owners have pored over assessments much more closely, as hot real estate markets have meant rising property prices. This has caused a ripple effect of price rises in what were more-affordable areas. Increased buying has led to price jumps in places far from the booming Lower Mainland and southern Vancouver Island markets.

The only real bad news this year came for residents of 14 condemned homes in Seacrest in Sechelt, who saw their assessments drop to $2 per property.

The ripple effect has been seen in many areas of the southern half of the province. A decade ago, after all the excitement of the 2010 Winter Olympics, increased buying (much by foreign buyers) started to rapidly boost prices in Vancouver, Whistler, West Vancouver and Richmond. Prices then began rising in other parts of the Lower Mainland. At first, the biggest price jumps were in other areas considered desirable by wealthy buyers, such as other North Shore areas, Coquitlam and South Surrey. Then prices began rising in other areas of Metro Vancouver, followed by the Fraser Valley. People began looking further afield to find affordable homes.

READ MORE: Your home probably went down in value, but your taxes may still go up

The same phenomenon took place on Vancouver Island. Victoria was among the first places to witness big price increases. Then it spread to other parts of the Capital Regional District and up the island. Many of the buyers who have boosted prices in parts of Vancouver Island like Nanaimo and Parksville have come from the Lower Mainland, or other parts of the country.

The Interior market was somewhat different. Kelowna, the Shuswap and much of the Okanagan had already seen significant price jumps due to heavy buying by out-of-province vacationers, who were looking for retreats – both summer and winter. This market shrunk rapidly when the price of oil dropped in 2014. Many Albertans no longer had cash to spare on additional homes. Alberta buyers had also flocked to areas of the East Kootenay such as Radium, Invermere and Fernie.

The drop in demand in the Okanagan was brief, as buyers from Metro Vancouver looked at buying second homes or relocating entirely. The same level of interest has been seen in Kamloops, which until that time did not get as much consideration as Okanagan areas.

READ MORE: Surrey, Abbotsford homes crack top 10 most expensive properties in B.C.

This year’s assessments continue to rise in some areas. Kitimat, for example, has seen assessments jump 41 per cent – largely due to LNG construction. Prince George has jumped five per cent, Kamloops seven per cent and Nanaimo has jumped three per cent. Meanwhile, provincial tax policy and general unaffordability has caused prices in most of Metro Vancouver to drop. Many detached homes have seen assessments drop by about 10 per cent. Prices are still high though – the average detached home in Vancouver is assessed at $1.57 million.

Assessments are used by municipalities for property tax purposes. In general, rising or declining assessments do not affect the level of taxation on individual properties very much. However, there are always exceptions.

B.C. residents have long taken a strong interests in real estate, and the annual assessments offer an opportunity to reflect on how prices stand in our neighbourhoods.

Frank Bucholtz is a columnist and former editor with Black Press Media. Email him at frank.bucholtz@blackpress.ca.


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Interior Health will not expand Police and Crisis Team

Southeast Division Chief Superintendent Brad Haugli asked IH to expand the program

Work set to begin on passing lane near Jaffray

The province says work will soon begin on a westbound passing lane… Continue reading

QUIZ: Put your knowledge of Canada to the test

How much do you know about our country?

Province releases report on Columbia River Treaty public feedback

Reservoir levels, fair compensation for impacted communities, among many issues raised

WildSafeBC reports cougar kill site in Kimberley Nature Park

Use extreme caution if you are walking or hiking in the area.

VIDEO: Musqueam Chief captures captivating footage of bald eagle catching meal

‘This is why we have chosen to live here since time immemorial,’ Chief Wayne Sparrow’s nephew says

Police ramp up efforts to get impaired drivers off B.C. roads this summer

July is dedicated to the Summer CounterAttack Impaired Driving Campaign

Migrant workers stage multi-city action for full status amid COVID-19 risks

‘COVID-19 has exacerbated an existing crisis’

Okanagan school drops ‘Rebels’ sports team name, citing links with U.S. Civil War

Name and formerly-used images “fly in the face” of the district’s human rights policy, says board chair

PHOTOS: B.C.’s top doc picks up personalized Fluevog shoes, tours mural exhibition

Murals of Gratitude exhibit includes at least one portrait of Henry alongside paintings of health-care workers

In troubled times: Independence Day in a land of confusion

Buffeted by invisible forces and just plain worn out, the United States of America celebrates its 244th birthday

Stop enforcing sex work laws during COVID-19, advocates say

There are provisions in Canada’s prostitution laws that make workers immune from prosecution, but not from arrest

Liberal party finished 2019 having spent $43 million, raised $42 million

All political parties had until midnight June 30 to submit their financial reports for last year

B.C. teacher loses licence after sexual relationships with two recently-graduated students

The teacher won’t be allowed to apply for a teaching certificate until 2035

Most Read