Lyonel Doherty

Times-Chronicle

Single-family home assessments in Oliver and Osoyoos are up more than 30 per cent, according to the latest figures.

BC Assessment says the real estate market in the Okanagan has been robust, which means that most property owners can expect higher values in 2022.

For example, Osoyoos assessments have increased 35 per cent. The typical assessed value of a single-family home in 2021 was $433,00. That value has soared to $600,000, according to BC Assessment.

In Oliver, assessments have increased by 33 per cent, with the typical home valued at $416,000 in 2021, compared to $557,000 this year.

Penticton homes have also increased in assessment by 33 per cent, while Keremeos’ assessments have gone up by 36 per cent.

Mathew Lewis, broker/owner of Remax Wine Capital Realty, says people should realize that these evaluations and assessments are very broad since they are done by a computer system. When was the last time you saw an assessor or appraiser conduct one of these evaluations on site? Lewis admits he hasn’t seen many in the last 10 years.

He adds that accurate evaluations can only be determined case-by-case by professionals.

Lately, the Oliver realtor has been challenged by fielding many calls from people questioning their assessments.

As for the increases, Lewis pins the reason primarily on supply and demand –  in this case a lack of homes for sale. Very low interest rates are a big incentive to buy right now, he points out.

Lewis admits he has been very busy showing and selling homes.

“I’m seeing an exodus of people leaving suburban areas (Langley and Surrey) to come to the South Okanagan because they can work virtually from home.”

Moving forward, the realtor predicts to continue seeing a lack of supply offset by higher values.

But Area C director Rick Knodel is very concerned about the impact these assessments are having on people, particularly lower income families.

He prefaces by saying the housing crisis in B.C. was caused by unrestricted foreign purchasing of residential properties.

Knodel says this situation has caused a devastating blow to many innocent people who have been forced to pay highly inflated prices for homes.

“Many thousands of others will never be able to attain the dream of home ownership and will be condemned to paying crippling rents for the rest of their lives and likely their children also will face this fate.”

Knodel says wealthy people are pushing property values out of sight in low-income rural areas, forcing locals out of the market.

The director notes this is also happening to farmland and starting to have a negative effect on food prices.

Katie Amos from Century 21 Amos Realty agrees that the demand is outpacing the supply, which is driving up prices.

She too is seeing people from the Lower Mainland with “tons of cash” (after selling their homes)  and flocking to the Okanagan to buy properties over the asking price.

“We’re selling like hotcakes,” she says.

Amos acknowledges that the situation is upsetting some people who are trying to buy homes at these prices.

“I feel bad for buyers right now.”

She notes that clients are writing up several offers and still missing out on the sale.

“A lot of people get mad; it’s a tough market for buyers.”

But Amos says interest rates are still low and people have other options such as buying townhouses and condominiums before getting into the home of their dreams.

Some Okanagan homeowners have been impacted by wildfires and floods, which will affect their assessments. These homeowners are encouraged to contact BC Assessment to discuss any damage that occurred. The toll-free number is 1-866-825-8322.

Overall, the Thompson Okanagan’s total assessments increased from $159.3 billion in 2021 to $204.2 billion this year.

The total value of real estate on the 2022 assessment roll is approximately $2.44 trillion, an increase of nearly 22 per cent from 2021.

According to BC Assessment, an increase in property value does not mean an increase in taxes. But homeowners have often challenged this statement, arguing that their property taxes have gone up following an increase in their assessment.