The relentless climb of Nanaimo property values paused for a breather last year. Assessment notices went out to all Nanaimo property owners last week and many are finding the value little changed from 2011.
Average values for single-family homes, based on property assessments done by the agency on July 1 are down 1.27% from 2010.
Values rose slightly in several areas, but most neighbourhoods saw values down.
The most noticeable drops are clustered in north-end neighbourhoods, though central and south Nanaimo did not go unscathed.
One central-Nanaimo area saw average values down more than 10%.
A decade-long period of almost continuous growth was sidelined in 2011 by events outside local market forces. Housing sales slipped, especially at the higher end of the scale, where there are fewer buyers. Property values that doubled during the 2000s stopped rising. For the smart buyer, it creates a rare opportunity to get an ocean-view or waterfront property.
It isn’t the first time Nanaimo’s housing industry has skipped a beat and it is the nature of real estate markets to run in cycles.
“You look at the pressures in the market – unemployment, challenges with new builders, with HST, overall higher-end market challenges, it’s got to come out,” said Jim Stewart, Vancouver Island Real Estate Board past-president.
Realtors saw 2011 end with an average home selling price of $362,680, just $305 less than a year earlier, or essentially unchanged.
“Late last spring there was waiting with anticipation for the outcome of the HST vote, and (then) everyone was waiting to know who the next premier was to set the agenda for the year. Then in the fall everyone was concerned about the world market. Is Greece going to fail? You look at little Vancouver Island, there are places elsewhere in Canada prices are down doubledigit,” Stewart said.
The 2012 assessment roll puts a total value on all Nanaimo property at $12.742 billion, the bulk of which, $10.769 billion, is residential.
Those numbers are down slightly from 2011′s $12,683 billion total and $10.786 billion in residential. Those totals include about $1 billion in churches, downtown revitalization, pollution-control and other taxexempt property classes.
The B.C. Assessment Authority divides the city into 17 neighbourhoods, and the numbers it produces for each neighbourhood are what matter to homeowners.
Excluding apartments, vacant lots and condominiums, Jingle Pot/College Heights and Hawthorne saw average property values rise the most, at 1.14%. Average home values rose by less than 1% in Chase River/Cinnabar, Uplands/Sunshine Ridge/ Country Club, Hammond Bay and the extended downtown core areas.
The most noticeable drop was in the Commercial Industrial Bowen/Northfield area, where assessments fell 10.28%.
All other areas saw average values drop, with decreases of greater than 4% assessed in Townsite/Hospital, Dover/Dickenson, Long Lake North Island Highway and Protection Island areas.
For most homeowners, this year will be easier than most to figure out their property taxes simply by looking at their property’s assessed value.
Because the average value is so close to 2011, anyone whose assessment is close to last year’s can expect to pay close to the tax rate set by city council this spring.
“Assessments are unchanged, so it should be relatively easy to tell,” said Bill MacGougan, Nanaimo assessor.
While the HST and a sluggish economy are both hurting sales in higher-end properties classes, some see it as an opportunity to buy that dream property.
“When you think the average waterfront home is $800,000, if you get something for less than $800,000 it’s probably a pretty good buy,” Stewart said. Those deals exist because “there’s not that many buyers in that range.”
First-time buyers would be wise to make 2012 a year to renovate, rather than sell.
“If you bought in the last year or so it’s going to be challenging for you to exit on the profit side,” Stewart said.
http://www.canada.com/Real+estate+flatline/5983621/story.html
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