(Canadian Press photo)

(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

Just Posted

RCMP. (Phil McLachlan/Capital News)
Suspect arrested after armed robbery in downtown Castlegar

Victim was allegedly threatened with knife and bear spray

Columbia Avenue Redevelopment — Phase 2 will begin in February. Image: City of Castlegar
Construction on the Columbia Avenue Redevelopment Project beginning March 1

Crews will be clearing brush and trees and removing asphalt

A dose of COVID-19 vaccine is prepared at a vaccination clinic in Montreal’s Olympic Stadium on Tuesday, Feb. 23, 2021. THE CANADIAN PRESS/Paul Chiasson
39 new cases of COVID-19 in Interior Health region

The total number of cases in the region since the pandemic began is now at 7,334

(file photo)
Nomination packages available for Castlegar byelection

The mayor’s seat and one council seat will be on the ballot

The Skinny Genes Foundation is raising awareness and funds for a rare genetic disorder that claimed both his father and uncle.
NHL players, local businesses help Kootenay man raise funds and awareness for rare genetic disease

Signed NHL jerseys and local business donations up for auction in Skinny Genes Foundation fundraiser

A health worker holds a vial of AstraZeneca vaccine to be administered to members of the police at a COVID-19 vaccination center in Mainz, Germany, Thursday, Feb. 25, 2021. The federal state of Rhineland-Palatinate, start with the vaccination of police officers in internal police vaccination centers. (Andreas Arnold/dpa via AP)
B.C. officials to unveil new details of COVID vaccination plan Monday

Seniors and health-care workers who haven’t gotten their shot are next on the list

An investigation is underway after a man was shot and killed by Tofino RCMP in Opitsaht. (Black Press Media file photo)
Man shot and killed by RCMP near Tofino, police watchdog investigating

Investigation underway by Independent Investigations Office of British Columbia.

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. Supreme Court in Vancouver on Tuesday December 11, 2018. THE CANADIAN PRESS/Darryl Dyck
B.C.’s compromise on in-person worship at three churches called ‘absolutely unacceptable’

Would allow outdoor services of 25 or less by Langley, Abbotsford and Chilliwack churches

Baldy Mountain Resort was shut down on Saturday after a fatal workplace accident. (Baldy Mountain picture)
Jasmine and Gwen Donaldson are part of the CAT team working to reduce stigma for marginalized groups in Campbell River. Photo by Marc Kitteringham, Campbell River Mirror
Jasmine’s story: Stigma can be the hardest hurdle for those overcoming addiction

Recovering B.C. addict says welcome, connection and community key for rebuilding after drug habit

A Vancouver restaurant owner was found guilty of violating B.C.’s Human Rights Code by discriminating against customers on the basis of their race. (Pixabay)
Vancouver restaurant owner ordered to pay $4,000 to customers after racist remark

Referring to patrons as ‘you Arabs’ constitutes discrimination under B.C.’s Human Rights Code, ruling deems

Nanaimo children’s author and illustrator Lindsay Ford’s latest book is ‘Science Girl.’ (Photo courtesy Lindsay Ford)
B.C. children’s writer encourages girls to pursue the sciences in new book

Lindsay Ford is holding a virtual launch for latest book, ‘Science Girl’

Most Read