Valley home values jump, but may not reflect market

The property assessment notice that arrived in your mailbox this week may not reflect the real estate market, according to the Vancouver Island Real Estate Board (VIREB).

B.C. Assessment says the 2019 values reflect market movement and actual sales in any individual property owners neighborhood, in addition to the property’s amenities.

Assessor Tina Ireland say the majority of the Island’s residential homeowners can expect “increases up to 20 percent as compared to last year’s assessment.” BC Assessments estimate market value as of July 1 each year.

But in its annual year-end market review, the VIREB said the market has cooled off and pinned the price increase of single-family homes at 10 percent from December 2017.

In Comox, some homeowners have reported assessed value increases between 25 percent and 35 percent, even though BC Assessment said the average increase was 17 percent.

In Cumberland where average assessments rose 27 percent, the third highest on Vancouver Island, some individual properties must have increased by 35 percent or more.

Here’s how Comox Valley communities ranked in assessments:

Courtenay: Single-family homes increased an average of 17 percent, from $385,000 in 2017, to $450,000 in 2018.

Comox: Single-family homes increased an average of 17 percent, from $441,000 in 2017, to $517,000 in 2018.

Cumberland: Single-family homes increased an average of 27 percent, from $360,000 in 2017, to $460,000 in 2018.

Campbell River: Single-family homes increased an average of 16 percent, from $345,000 in 2017 to $401,000 in 2018.

The biggest assessment increase occurred in Sayward, where values jumped 44 percent to an average home value of $205,100. Tahsis increased by 30 percent to $99,600, followed by Ucluelet at 21 percent to $403,00 and Tofino at 19 percent to $767,000.

Parksville and Qualicum Beach had more modest value hikes, but still recorded double-digit increases of 11 percent and 13 percent respectively.

The VIREB annual review said, “Despite lower demand, however, year-over-year benchmark prices of single-family homes continue to rise board-wide, up 10 per cent from December 2017.”

The board said decreased demand and additional inventory has turned a sellars’ market into a balanced or near-balanced market. Single-family home sales dropped 19 percent from 2017.