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Property values make South Okanagan attractive to buyers

Property values in B.C. climbed dramatically in 2016, according to the latest figures released by B.C. Assessment.
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Property values in Penticton and the South Okanagan were lower than those assessed in other regions in the province

Property values in B.C. climbed dramatically in 2016, according to the latest figures released by B.C. Assessment.

The total value of real estate in the province shot up to $1.67 trillion, an increase of almost 24 per cent over last year, and there was about $25 billion in new construction, rezonings and subdivisions, a 24 per cent increase.

“This is the first time in probably 10 years that we have seen these kinds of increases,” said deputy assessor Tracy Wall. “It is an indication there is more demand for real estate in our province.”

Related: 2016 saw an Increases in property assessments

Prices top out at $75.8 million for a home in Vancouver, well ahead of the highest assessment property in the Okanagan, a $9.2 million home in Kelowna.

Kelowna dominates the Thompson-Okanagan Top 100 list, reflecting a 13.47 per cent increase in residential property values, the highest in the region. Summerland is the only community in the South Okanagan Similkameen to make it onto the list, with a property assessed at $4.75 million.

The top valued residence on a smaller lot in Penticton is $2,018,000 for a property on Lakeshore Drive, and a residence on a Lower Bench Road acreage comes in at $2,988,000.

Other communities in the region aren’t showing as large an increase as Kelowna, but most are continuing to rise. Summerland has a 10.26 per cent increase and Keremeos is next on the list at 6.68 per cent, just ahead of Penticton’s 6.51 per cent.

At 2.32 per cent, Princeton shows one of the smallest increases for residential properties, but had a much more substantial 5.91 per cent increase in commercial property values.

“There is a smaller pool of homes in Summerland compared to Penticton. There is an older stock of homes in Penticton compared to Summerland, so that makes the averages slightly different,” said Wall. “In Penticton, you are getting the smaller, old, old houses and the big new houses, where Summerland has more the mid-aged homes.”

Pamela Hanson, president of the South Okanagan Real Estate Board, said the real estate market is driven by other factors than just assessed values, but the ongoing rise is encouraging.

“Certainly it is an indication that we can be hopeful that prices will go up in the spring,” said Hanson. “The amount of sales that we’ve had in the past year make me feel very optimistic about this year’s market.

“We had a large number of sales, greater than any year in our previous history.”

Hansen added that with property values staying lower than Kelowna makes Penticton and the South Okanagan attractive to home buyers.

The ongoing rise in property values has the provincial government promoting its interest-free loan program for first-time home buyers as existing home-owners brace for higher property tax bills.

Rising values mean higher property taxes, and fewer properties qualifying for the provincial homeowner’s grant with homes valued at more than $1.2 million ineligible.

The province’s latest move is the creation of a second-mortgage fund for first-time buyers, called the B.C. Home Partnership. It starts taking applications on Jan. 16, with loans up to five per cent of the purchase price to a maximum of $37,500, interest-free for five years for qualified buyers.

Housing Minister Rich Coleman said the program is designed to help renters as well as first-time buyers, as more people move out of a tight rental market into their own homes. The province estimates 42,000 households are eligible to take advantage of the interest-free loans.

The 2017 assessment notices are being mailed out this week, and Wall said property owners can contact B.C. Assessment to speak to an appraiser about their individual property if they feel there is a concern.

She also recommends making use of the information available through their website.

If a property owner is still concerned about their assessment after speaking to an appraiser, they may submit a Notice of Complaint (Appeal) by Jan. 31 for an independent review by a Property Assessment Review Panel, added Wall.

Property owners can contact BC Assessment toll-free at 1-866-valueBC (1-866-825-8322) or through www.bcassessment.ca.