If you live in the central Okanagan, no doubt you’ve heard about the new 2019 City assessments that recently came out. And the confusion that followed: “So my assessment shows my home value went way up, but my Realtor® tells me that home prices have declined somewhat. What’s up with THAT?”
Essentially assessors worked the first half of 2018 to come up with assessed values for 2019. By July 1 of 2018 they have to have their research done, and values in place. Then in January of 2019 we as home owners see those city assessed values, and the corresponding hike in our property taxes.
However, in the mean time our burgeoning market of 2017 started to show signs of slowing down by mid 2018. SO just as the assessment values were being raised because of the activity of the previous year, the ACTUAL values of homes started to decrease - not a lot, but some.
So that is when crap hit the fan. Just as homeowners were forced to realize that their $600,000 home wasn’t going to be worth $700,000 in the next year, but maybe $575,000 instead, they get their assessment that says their home (assessed at $550,000 last year) is now assessed at $590,000. And their property taxes went up.
This is not a pleasant reality – however it is reality. By next year this will have sorted itself out again, and most likely the assessed values will once again be a bit below market (selling) value, which is typically what it looks like. So unless your assessment from the City is WAAY out of whack, it’s likely best just to apply for your homeowner grant, exempt yourself from the speculation tax (that’s another story!), then chill with a glass of wine. After all, in a few short weeks we will once again be seeing SUNSHINE and warmer days! And then we will realize the sky didn’t fall and life goes on.
By Anne Wolfe, Realtor® on behalf of Meeting of the Minds