We would like to start off first by saying thanks for reading Lonsdale Avenue Magazine, we are working hard to publish unique useful articles that add value to the various members of the community and local stakeholders. As well we are going to start doing a monthly meetup for local realtors, brokers, developers, mortgage specialists and related professionals where we talk shop about local real estate sales and developments. If you would like to join our closed group of real estate movers and shakers contact us for details on the next meetup. We have round table chats over food or drinks and bring tons of value to the group discussing marketing, websites, social media and more.
“How’s the market?” This is a question heard multiple times a day by realtors in Vancouver. In fact, this is likely a question heard almost every day by any resident of Metro Vancouver. It is vital to look at the raw data of sales volume in specific communities to understand the trends and comparisons of past year totals and make a connection to trends that could be coming in 2020.
North Vancouver Attached Market – 2018 vs. 2019 vs. The Average
The North Vancouver attached market total sales volume count was nearly identical in 2018 and 2019. 1285 sales (2018) and 1290 sales (2019) are slightly above the average for yearly sales in North Vancouver.
When looking at the statistics provided you may notice July 2018 – June 2019 was a very lagging 12 month period. Only 1083 sales in that time period. However, the market turned significantly in the July to December period of 2019. Sales were well above the average and the market is trending upward into 2020.
Lower Lonsdale Attached Market – 2018 vs. 2019 vs. The Average
The Lower Lonsdale attached market saw a very slow end to 2018 and beginning to 2019, which is consistent with the North Vancouver total. Also consistent, is the strong finish to 2019. Sellers are accepting the prices of their homes are less than previous years and lower purchase prices are resulting. This trend should continue into 2020 as BC Assessments (more below) have lowered significantly in the majority of properties throughout North Vancouver and Lower Lonsdale.
North Vancouver Detached Market – 2018 vs. 2019 vs. The Average
The detached market in 2019 tells a different story than the attached market. While 2019 saw higher volumes than 2018, the numbers in 2018 and 2019 are much lower than the yearly averages. This can be explained by the higher price points that detached properties have and the inability of most first time home buyers to enter this market. With BC Assessments lowering home values significantly in 2020, there should be reason enough for seller’s to accept the actual value of their homes and the volumes should begin to raise toward the average in 2020.
Measuring BC Assessed Value Vs. Actual Market Value of Your Property
The BC Property Assessments are meant to provide a stable and predictable base for real property taxation in British Columbia and are widely thought of by homeowners as the actual value of their property. While the concept is viable in theory, it is very important to understand how and when the BC Assessments are measured.
What is Measured?
BC Assessment measures home values based on comparable sales in the neighbourhood of the subject property. Lot size, home square footage, age of construction and number of bedrooms etc. are collected and a value is determined. The problem is that there are many more factors which determine a homes true value. Nowadays, there is a vast range of materials that are used in construction and finishing of homes. Spec homes and custom homes can equate to a considerable difference in value. A neighbouring property with similar square footage and lot size can hold a significant difference in value to a neighbouring subject property.
Timing of Assessment
There are so many properties to be measured, which makes it impossible for BC Assessments to provide up-to-date evaluations. Even when the new assessments are sent to homeowners in early 2020, they are measured as of July 1st, 2019 and home value will already be lagging by 6 months. The market has changed drastically since July 1st, 2018 and can fluctuate substantially in a 6 month period.
In summary, it is in every homeowner’s best interest to have an up-to-date and accurate value of their property. This is vital information to have when owning a property not only for potential resale value, but homeowners may be paying significantly more tax than necessary on a yearly basis if their property is valued too high.