Local homeowners won’t see see the double-digit sticker shock in the new year that they saw at the start of 2019 as prices are expected to moderate.
The 2020 property assessments for Chilliwack and Abbotsford are projected to range between a 10 per cent decline in valuations and no change at all when the numbers come in Jan. 2, 2020, according to BC Assessment.
Compare that to Jan. 2, 2019 when the average Chilliwack single family home increased by 10 per cent from $559,000 in 2018 to $613,000. Residential strata homes (condos) increased 23 per cent from $289,000 in 2018 to $355,000 for 2019.
The local prediction of a decline of between 10 per cent and zero per cent this year compares to a predicted drop of up to 15 per cent across the Lower Mainland overall.
|This map demonstrates the forecasted ranges of typical changes in 2020 property assessments by region and property type. (BC Assessment)|
Homes in Northern B.C. are projected to increase by up to 30 per cent, while the Kootenays could rise by 15 per cent.
“We first saw signs of moderation during the 2019 property assessments,” assessor Tina Ireland said in a press release, speaking of the provincewide numbers. “For 2020 assessments, we are seeing a continued ripple effect of a moderating market expanding across the province.”
Assessed values are based on trends in the real estate market as of July 1, 2019. That being said, the average selling price of a single family home in the Chilliwack and District Real Estate Board in June 2019 was $628,090. In July that dropped to $613,826, and has fluctuated between $606,000 and $628,000 since.
Sale prices often vary significantly from assessed values.
Any increase or decrease in assessed values often leads to the mistaken assumption that homeowners will see a similar increase or decrease in property taxes. What leads to that, however, is how a homeowner’s assessment changes relative to the average change in the community.
One number that stands out in the BC Assessment projected market value changes is that industrial properties in Chilliwack and Abbotsford could increase by as much as 35 per cent, the highest rate in the province. Local commercial properties are slated to increase in value by 10 to 25 per cent, while BC Assessment says commercial properties overall across the Lower Mainland “have stabilized.”
All numbers are preliminary projections only and are subject to change. The final numbers will be released on January 2, 2020. Visit bcassessment.ca on January 2 to access a variety of 2020 assessment information including searching and comparing 2020 property assessments as well as market movement trends.