Current real estate market prices may not reflect assessed value, says BC Assessment
It’s that time of year again.
BC Assessment recently released its home-price assessments showing most Lower Mainland homeowners saw a bump in the value of their property in 2022.
However, the organization was quick to warn that it collects its appraisal data on July 1, which means most properties assessed values are likely higher than the price they would fetch in today’s market.
“Despite the real estate market peaking last spring and showing signs of cooling down by summer, homes were still selling notably higher around July 1, 2022, compared to the previous year,”said BC Assessment assessor Bryan Murao. “For both single-family homes and condos in Greater Vancouver, most homeowners can expect about a 9% rise in values, whereas the Fraser Valley will be a bit higher at about 10% for houses and 15% for condos and townhomes.”
According to the data, the total assessed value for the Lower Mainland region has increased from $1.75 trillion in 2022 to more than $1.94 trillion in 2023. Murao noted that close to $23 billion comes from new construction, subdivisions and the rezoning of properties.
Keith Barron, a real estate and conveyance lawyer with Clark Woods LLP, said stabilizing interest rates has led to an uptick in home sales over the last few months.
I’m not really in the prediction game, but we do see a lot of trends,”he said.“Toward the end of 2022, we did see a sharp decline in the number of transactions, however those have started to pick up through November and December, and January seems to be back on pace.”
Uncertainty in the real estate market tied to rising interest rates and fluctuating prices caused many people to stay on the sidelines in 2022, he noted. However, now that people have adjusted to the new reality, they seem to be more eager to start house hunting again, Barron said.
“We are seeing a lot of those people jump back in now,”Barron said. “The prices may be different, and you may not have the same interest rate as before, but there are a lot of people who are still interested in buying a home.”
Are you looking to buy or sell a home? The legal experts at Clark Woods LLP are happy to assist with your real estate and conveyance needs. Call 604-330-1777 today to setup a consultation or visit our real estate page for more information.