With 2015 underway, property owners will have received their 2015 property tax assessment notice. In the greater Victoria area many will notice an increase in their property assessment, and we see this as positive news!
What does this mean?
First, it is important to understand the difference between assessed value and market value. We wrote about that here, but in short, when we see an increase in our property assessment this reflects a stabilized real estate market.
The good news is that after two consecutive years of decreases, this year we are noticing increases in Victoria’s core municipalities. The largest increase: average single-family homes in Oak Bay at $686,000 – up 2.85%. By comparison, Victoria is up 1.9% to $536,000.
We are also seeing stable pricing. In 2014, there was less inventory overall, but more sales. With property pricing under scrutiny over the last few years, pricing corrections and adjustments have taken place, and properties are being priced well. When properties are priced well it means they are priced right and tend to move quickly.
Mortgage rates are another a big factor in the equation at hand. Current mortgage rates are attractive, but going forward property prices will depend largely on what happens with the mortgage rates. If the rates continue as they are now, job growth is predicted along with increasing consumer confidence. This suggests a positive ripple effect in the overall market for a healthy real estate market in 2015!
Are you thinking of selling?
More details here on Victoria’s 2015 assessments.