Property owners across the Sunshine Coast are now receiving their 2008 assessments in the mail, and the numbers are showing another year of significant increases in assessed home value.
The rising values seen locally are "consistent with the rest of the province and in fact are slightly less for this part of B.C.," said Jason Grant, area assessor for the Sunshine Coast.
Semi-rural properties within the Sunshine Coast Regional District (SCRD) made the biggest leap in value, up by more than 13 per cent on average. Grant noted the increase was driven in part by increased value of waterfront properties - a typical single-family waterfront home in Roberts Creek is now valued at more than $1.1 million, up $61,000 from the last assessment.
Sechelt and the Sechelt Indian Government District (SIGD) both saw residential property values jump by nearly 10 per cent on average, while properties in Gibsons rose by 10.6 per cent since the 2007 assessment. Business property values rose slightly, up by 9.8 per cent in Gibsons, 9.1 per cent in Sechelt and 9.0 per cent in the SIGD.
The total value of the assessment roll for the Coast is now $9.2 billion, up $1 billion since the 2007 assessment. About $200 million of that is from new construction, subdivisions and rezoning. Local realtor Chris Sjogren said this year's increase reflects the return to a more stable market, with yearly gains expected to be in the five to 10 per cent range.
"This is a return to historic patterns, which went out the window about five years ago," he said, describing the 15 to 25 per cent annual increases taking place over the course of the recent real estate boom.
Assessments are based on the value of land and improvements (the actual house upon the land, for example) that together comprise the value of the property, as determined by age of the home, location and current sales in the neighbourhood.
Assessment values are calculated as of July 1, 2007, a fact Sjogren said means assessments are at best six months behind market value.
"In my opinion, assessments are more likely to [approach] market value in a slow growth economy," he said, noting they are best viewed as "a general gauge of value in any given area. The fact that assessors rarely enter the home or even the property ensures a wider margin of error, as opposed to an appraiser's or a realtor's detailed evaluation," he said.
Grant noted the B.C. Assessment website (www.bcassessment.bc.ca) has undergone some user-friendly changes this year, such as easy tools now available to compare assessed values and sales of comparable neighbourhoods. People who wish to search for their assessment online will find it in the North Shore-Squamish Valley assessment area on the website, he said.So are the high assessments a cause for concern or a reason to rejoice for homeowners? It depends, Sjogren said. "Most sellers like the high assessments and hope for the highest possible price, possibly believing a high assessment helps them achieve that goal," he said. "Concerns about rising values are what drive some people to buy, and to 'lament that they didn't buy earlier.' [But] high taxes bother everybody. If the assessment is low, be thankful. It means you pay lower taxes, and shouldn't have any effect on market value."
Grant said homeowners shouldn't worry too much about increases to the mill rate, the property tax charged by a municipality per $100,000 of assessed value.
"It's important for homeowners and businesses to understand that in response to rising assessments, tax jurisdictions will alter their tax rates only enough to collect the funds they require," he said.
Those concerned their assessment is too high can have it re-appraised by B.C. Assessment, and can file an appeal with the assessment board if needed. Most appeals result in an adjustment if warranted, Sjogren said.
