BC Property Assessments Are Up For 2023 – However, Values May Not Be Worth What They Are Today

BC homeowners have begun to receive their annual property assessments in the mail. The assessment is based on the value calculated on July 1, 2022. While the value will be higher than a year earlier, the recent hike in interest rates has put a damper effect on the current prices, and the real-time values may be less.

According to the values calculated by BC Assessment, property values have gone up everywhere, in particular the Fraser Valley.

– City of Vancouver detached homes up 7% and strata homes up 6%.

– Surrey detached homes up 13% and strata homes up 16%.

– Langley detached homes up 15% and strata homes up 13%.

The updated assessments follow the massive growth in real estate between July 2020 and July 2021 when house prices throughout Canada increased by 34%. This unparalleled growth continued from July 2021 to early 2022. Then inflation started to rise to levels not seen for decades, and the government responded by raising interest rates, and this has cooled down the real estate market.

So the values in July 2022 are not what today’s value might be. In some cases the real time assessments may be 10-15% lower. The decreases since the peak last spring are deeper in the Fraser valley. During the pandemic, the Fraser Valley and suburban areas saw the biggest price increases – they are now seeing the biggest price corrections. It is not uncommon to see suburban houses down 20-25% since the peak, while the Lower Mainland has not seen such a sharp decline.

As a result, BC Assessment has advised homeowners that the value of their home as shown in July 2022, may be different from the current value in the real estate market.

It should be noted that a jump in a property’s value assessment does not necessarily translate to a hike in property taxes. In a comment on the latest assessments, BC Assessment’s Bryan Murao said, “ As noted on your assessment notice, how your assessment changes relative to the average change in your community is what may affect your property taxes. If detached homes and condos go up the same amount, if your property goes up the same amount as that average, your taxes don’t really change beyond what the municipality actually has in store for their total budget increase.”

As valuations rise, the BC government is boosting the homeowner grant threshold to $2.125 million for this year. This means that about 92% of residential properties will be eligible for the grant, which will reduce the property tax on a principal residence.

If you have any questions on this topic or any other topics, please contact us by email or call us on 604 913 1000. We can answer questions on this and any other real estate related topic.