How much is your home in the Kootenays worth?
KootenayBiz reached out to Kootenay real estate agents to find out what BC Assessment values actually mean in the real world
If you own a home in BC, you already received your BC Assessment in the mail letting you know the value that the province places on the land and buildings that you own. What do those values actually mean if you are thinking of buying or selling real estate? To find out, KootenayBiz reached out to four real estate agents from the four corners of our region.
Here’s what those four Realtors® told us:
How do the BC assessment values compare with the current market value?
“The BC Assessments reflect the market as of July 1, 2022. The increases are based on a rising market value during the 1 year period.”—Sandy Smith, Cranbrook
“Broadly speaking, the new assessment values are becoming more representative of market value than they have been over the past few years in the Revelstoke area. A couple of years ago it was common to see assessments off by 30% or more compared to market value, but that seems far less prevalent now. I am starting to see the occasional assessment which I would argue exceeds the property's current market value, which is new. I wouldn't advise anyone considering entering the market as a buyer or seller to rely upon BC Assessment for market value. On the commercial side, I am continuing to see major discrepancies between market value and BC Assessments.”—Mike Brown, Revelstoke
The housing market in Canada’s larger centres seems to be dropping. Have you seen this trend in the Kootenays?
“Projections for the Kootenay area is to have a balanced market for 2023. A balanced market means there is enough demand from the buyers to equal the supply from the sellers. This should stabilize the market for 2023 without prices increasing or decreasing. Currently, the Cranbrook market still has lower inventory and buyers still inquiring to obtain real estate in our area. We may see a decrease in the marketplace to obtain a balanced status.”—Sandy Smith, Cranbrook
“Real estate market conditions remain tight due to low inventory. Our annual sales performance in the Kootenays saw a 23% decrease in units sold compared to the busy 2021 market. In 2022 we sold 3066 residential units in the Kootenay region.
Average residential home prices in the Kootenay region remained flat but stayed above the $500K mark for most of the year. In December 2022, average prices dropped to $445,932—this is the lowest they have been in over a year.”—Bruce Seitz, Cranbrook
“Personally, I really like the pace of the current market. There are still plenty of serious buyers out there. I think the initial shock of the interest rate hikes have settled so the buyers are back in business. The demand is still higher than the supply, which makes it a good time to sell. I like that buyers have a bit more time to think about things and have the comfort of adding in contingencies to an offer to protect themselves. It's a good balanced market for both buyers and sellers, in my opinion.”—Paula Owen, Nelson
”I continue to describe the Revelstoke market as resilient. Some segments of the market are softening more markedly than others, but we enter 2023 with average selling prices still comfortably ahead of where they were in January 2022.”—Mike Brown, Revelstoke
Do you see 2023 as a good year for buyers or sellers (or both) in the Kootenays?
“Currently, the Cranbrook market still has lower inventory and buyers are still inquiring to obtain real estate in our area. We may see a decrease in the marketplace to obtain a balanced status.”—Sandy Smith, Cranbrook
“As we start 2023, I am optimistic that the housing inventory will continue to accumulate and lead to a more balanced market which will benefit both buyers and sellers. I feel that the 2023 real estate market in the Kootenays will continue to be strong as we are still one of the most affordable and desired places to live in BC.”—Bruce Seitz, Cranbrook
Anything else you care to add about the BC assessment property values?
“It's important to remember that regardless of when assessments were done (July of the previous year), that they do not take into account the interior improvements/features or limitations of a home or property. While they can act as one tool for calculating market value, they should not be relied on for an accurate market value. The most accurate market assessment is what comparable homes have sold for in your area.”—Paula Owen, Nelson
The Real Estate agents
If you are wondering how your BC Assessment might compare with current market value, reach out to a Real Estate agent in your neighbourhood. Here are the four knowledgeable Realtors® from different regions in the Kootenays that took time to answer the questions above: