Last Friday's BC Assessment roll-out of information showed property values in the Tri-Cities are stable or have increased - largely due to the coming of the Evergreen Line and new development on Burke Mountain.
Those who own acreage on Burke have seen their land values rise by 30% to 75% or more and, along the Evergreen Line corridor, older properties are being purchased and held onto for redevelopment, according to the BC Assessment authority.
But for the rest of us, news of a small increases or decreases in the assessed values of our houses, condos or townhomes won't mean much - the only number that counts is the final sale price. That's because this assessment is based sales from six months ago and permitted land-use as of Oct. 31 while sale price is determined by current market forces.
So while we like to amuse ourselves with value appreciation/depreciation data for our properties - and especially those of our neighbours - these assessments are mostly useful for gauging the property tax bite we'll face mid-year.
City bureaucrats will tell you that a small rise or fall in your property's value won't change your taxes much as long as the change in your assessment doesn't deviate too much from the average. For example, if property values in Coquitlam rise on average 5% over the previous year and yours went up 10% owing to a renovation or a surge in high-value home sales in your neighbourhood, your taxes might take a noticeable larger bite out of your budget.
In practical terms, this means it's better to see a drop in assessed value because it could mean a slight decrease in the taxes you will pay in 2015, although this may be offset by higher Metro Vancouver utility fees and higher costs of providing city services.
It's really city bureaucrats who need this information because they use it to determine property taxes residents and businesses will pay. Still, for many homeowners, the annual property tax assessment revelation is an opportunity for a bit of post-holiday discussion.
