House Assessments Coming

More than 18,000 property owners in the City of Penticton and surrounding areas can expect to receive their 2007 assessment notice in the coming days.

Assessments are the estimate of a property’s market value as of July 1, 2006. This common valuation date ensures that all properties are assessed fairly and there is an equitable base for property taxation.

“Most homes on this year’s assessment roll are worth more than they were on the 2006 assessment roll, and market movement appears strong when compared to previous years,” says Okanagan Region Assessor Jim Inverarity.

The real estate market creates property value, which is reported annually by BC Assessment. Local governments and other taxing authorities are responsible for property taxation, and after determining their own budget needs this spring, will determine their property tax rates based on BC Assessment’s data.

Overall, Penticton’s assessment roll increased from over $3,500,000,000 last year to over $4,500,000,000 this year. Much of this growth reflects changing market values for many properties but also includes $155,000,000 in changes through subdivisions, rezoning and new construction.

Property owners should contact their local government, or taxing authority, for more information about their property taxes.

“For example, a typical single family home that was assessed at $272,000 in the summer of 2005 was assessed at $342,000 in the summer of 2006,” says Inverarity.

Changes in property assessments are reflective of movement in the local real estate market and can vary greatly from property to property. When estimating a property’s market value, a professional appraiser analyzes current sales in the area, as well as considering other characteristics such as size, age, quality, condition, view and location.

The examples below demonstrate local market trends for properties by a geographic area trends are affected by many variables.

Assessments for Penticton for 2006 and 2007:

Strata properties: 2006 - $162,000, 2007 - $210,000

Wiltse: 2006 - $340,000, 2007 - $425,000

Between the malls: 2006 - $272,000, 2007 - $350,000

Downtown houses: 2006 - $230,000, 2007 - $290,000

Uplands/ Redlands: 2006 - $340,000, 2007 - $425,000