Lyonel Doherty, Times Chronicle

Home assessments in Oliver and Osoyoos are up 10 to 14 per cent, according to latest figures by BC Assessment.

In 2022, the typical assessed value of a single-family home in Oliver was $555,000, compared to $610,000 in 2023, a 10 per cent increase.

In comparison, Osoyoos’ typical assessment jumped from $601,000 to $685,000, a jump of 14 per cent.

Okanagan area deputy assessor Tracy Wall said home assessments are generally up 10 to 15 per cent, while condos and townhomes are up a bit higher. 

Osoyoos realtor Ken Davreux from Century 21 Premier Properties said he doesn’t think it’s a surprise to anyone that assessments are up.

“Although the market did come down at the end of the year, the market was strong at the beginning of the year,” he said.  

Davreux added that real estate has been a great investment for Canadians over the years and it continues to prove why home ownership has been so valuable.

“Certainly, our local real estate market outperformed the stock market this year.”

The realtor said his “feel” of the local market prompts him to think it will continue to decline slightly until interest rates stabilize and/or start to go down, which is expected to happen toward the middle and end of 2023.

Davreux said Osoyoos had a significant decline in the number of sales compared to 2021, but he believes the local real estate market is getting closer to being a balanced market, which is a good thing. 

“There are a lot fewer subject- free and multiple offers on properties, which allows agents to do their job of properly protecting their clients better with subjects that reflect the needs of the buyer.”

The realtor added that people need to remember that 2021 was a record year and saw significant increases in values and the number of sales. “So it is not surprising that after a number of very strong years there would be a slight correction.” 

Again, he expects the real estate market in 2023 will continue to see moderate price decreases and slightly below normal number of sales, which is what one should expect while interest rates are stabilizing and inflation continues to drop. 

“Once we see interest rates and therefore the cost of borrowing start to drop, we will see renewed activity in the real estate market,” Davreux said.

Oliver realtor Jason Lewis from RE/MAX Wine Capital Realty said  BC assessments are not relative to today’s home values, adding they use values from sales over a year ago.

“The true price of homes today is not the BC assessed value. People should always get professional advice when inquiring about their home prices.”

Lewis said the increase in assessments for homes in this region was driven by very low interest rates and lack of supply. 

“At the start of the year it caused a buying frenzy not only in the Oliver area but all over Canada. I saw a large drive (to our region) from not only the Lower Mainland but all over Canada with people whose home prices skyrocketed. This fueled the relocation of many retirees with cash in pocket.”

With this frenzy and cash, and   

the lack of supply in the area, it was a “perfect storm” for the increase in local home values, he stated. 

Before the interest rates hike, a seller could put whatever price they wanted on their house, Lewis said. “Sellers were offered tens of thousands of dollars over list price just so buyers could stay competitive.”

Lewis believes it was great for sellers, many of whom took advantage of the situation to downsize, increase their nest egg and/or a chance to retire. “How the market was, people’s plans were accelerated.”

Lewis said now with interest rates increasing we are getting back to normal with subjects for home inspections, financing, and negotiations on prices. 

“I believe this is a good thing for buyers. It protects the buyers from added financial hardship from not getting a health report from a home inspector, which can be financially devastating to any first-time home buyer if something big has to be replaced.”

Lewis said the market is still good for most sellers. 

“When a seller wants to sell their home, they can still come out ahead, especially when they have owned for a number of years already.”

Lewis said the market in our area due to COVID factors was short lived. He noted that everyone was waiting with bated breath to see how it would unfold. “What happened was people realized quickly the house they were locked in was not good enough anymore. With low interest rates coupled with people being able to work from home, and people about to retire, sales took off.”

The realtor predicts that we will see a more reserved market. He believes buyers’ power will be diminished due to the higher rates. 

Will there be a decline in prices? “Absolutely, we are seeing it now, but I don’t see the single-family home market crashing. Buyers will see a lower price but if they need a mortgage it can be lost to the high interest rate.” 

Lewis said people have to keep in mind that real estate is a long-term investment with the perk of shelter if you stay for the long haul.

Overall, the Thompson Okanagan’s  total assessments increased from $203 billion in 2022 to $234 billion this year.

Wall noted a total of approximately $3.8 billion of the region’s assessments is from new construction, subdivisions and rezonings.

The total value of real estate on the 2023 assessment role is more than $2.72 trillion, an increase of nearly 12 per cent from 2022.

Changes in property assessment reflect movement in the local real estate market and can vary greatly from property to property. Factors include current sales in the area, size, age, condition, view, and location.

People who want to appeal their assessment can do so by Jan. 31. 

For more information call 1-866-825-8322 or email bcassessment.ca.