TGIF - BC's property assessments have hit our mailboxes, the 2016 market statistics are out - here's what you need to know!
Well we know we're well and truly into 2017 when the BC assessments hit our mailboxes! And...our phone is already ringing with protestations! Remember, these assessments were calculated last July following a run of escalating prices caused by low supply and high buyer demand. At that point there was no expectation of winding up the same year with slumping home sale prices. Just to put things in perspective, 2016 was still the 3rd best year on record behind 2015 and 2005. Our home values are still substantially higher than the year before. And...most importantly, unless an Assessment Authority appraiser personally toured your home, the assessment is likely NOT the accurate market value of your home.
In analyzing the December sales statistics, we realize that the December drop in sale prices was driven by single family detached sales which halved from the same period last year. This market had already cooled by the time the Provincial Government implemented the additional 15% property transfer tax for non resident buyers.
Condominiums represent the strongest market - in many spots, still a seller's market. However, again Government interventions, both federal and provincial are changing buying capabilities for first time buyers. The interest free loan could prove hazardous in the long run, depending on interest rates and prices holding...or not. As our Vancouver Real Estate Board president, Dan Morrison, recently commented:- "The long term effects of Government actions won't be fully understood for some time".
The real estate market is always especially good for certain sectors. At this time, it is the moment for move up buyers, specially coming from a strata situation. The differential is so much more favorable now than last Spring.
If you are trying to figure out next real estate steps, please consider us your resource. Happy to discuss preparation & strategies with you, whether your move is next week, next month or next year. Our privilege is to still keep you covered for another interesting year. Make it a good one!