Assessment increases are a tale of where housing sales are strongest
Posted: Jan 08 2011 Topic:
More people wanted to buy houses than there were people willing to sell them in Vancouver during 2010, which had a big influence on the rising value of property assessments.
Vancouver homeowners saw their property assessments from BC Assessment rise by 12.17 per cent on average, but actual increases varied considerably by neighbourhood.
According to a breakdown provided to The Sun by BC Assessment, the tony area of South Granville saw the biggest increase at almost 25 per cent.
The Marine Drive area experienced the smallest increase at a little more than one per cent.
The west-side neighbourhoods of Arbutus/Mackenzie Heights, Kerrisdale and Southlands all saw increases of about 20 per cent; Shaughnessy, Oakridge and Dunbar assessments rose a little more than 18 per cent.
“Those are all largely detached housing [neighbourhoods], and that’s where the biggest increase in prices has been,” said David Peerless, owner of Dexter Associates Realty in Vancouver and a director of the Real Estate Board of Greater Vancouver.
It wasn’t just that there was strong demand, Peerless added. There was also a limited supply of homes for sale, which led to bidding that pushed prices higher.
BC Assessment values all British Columbia properties as of July 1 each year. According to the Real Estate Board of Greater Vancouver, the benchmark price for detached homes on Vancouver’s west side in 2010 was $1.61 million, up 20 per cent from the previous year.
On the east side, the benchmark for detached homes was $722,571, up 9.2 per cent from the previous year.
The benchmark refers to an average price for typical homes sold.
However, Peerless said the east-side neighbourhoods that saw above-average assessment increases, such as Killarney and Collingwood, are areas that are predominantly single-family residential.
And, generally speaking, Peerless said the neighbourhoods that experienced the smallest increases are areas where condominiums are more prevalent in the housing mix.
The condominium market, Peerless said, had more projects being built and a higher number of properties up for sale, and consequently less bidding to push prices up.
Real Estate Board of Greater Vancouver data shows the benchmark price on west-side condominiums was up 5.7 per cent to $496,486. On the east side, the benchmark rose 2.6 per cent to $322,521.
“It’s really a supply and demand thing,” he said.
Marine Drive, for example, goes from the wealthy enclave of Southlands through a heavily commercial zone, which includes many condominium developments, to Boundary Road.
Mount Pleasant had the next smallest increase at just under five per cent. Peerless said that, again, was due to condominiums.
“Mount Pleasant does have some detached homes, but I would say if you counted up the numbers, you are probably dealing with more [condominiums],” Peerless said.
Other neighbourhoods that had assessment increases below the average — such as Grandview and Cedar Cottage — also have high numbers of condominiums in the housing mix.