It would have been rare to hear from a homeowner who thought their property value had been assessed too low a couple of decades ago, according to Bill Dawson, a deputy assessor for BC Assessment, but times change, as does real estate.
While homeowners in some parts of Metro Vancouver and Whistler contend with a red-hot market, those in more secluded areas such as Powell River are finding much more modest gains with their assessments. In some cases, they are finding the value of their property has actually dropped.
“It’s my observation, rather than a statistic, but there have been more people complaining about their assessments being too low than too high recently,” said Dawson, deputy assessor for Powell River, central and north Vancouver Island and southern and northern gulf islands.
Dawson explained the communities he assesses have seen relatively stable prices with modest increases over the past 20 years, with the exception of a blip around 2008/09 when real estate prices dropped everywhere. But that’s nothing compared to the meteoric rise in values for property in Metro Vancouver, where some neighbourhoods are seeing increases of 20 to 30 per cent in 2016.
Compare that to the average value for single-family detached homes in City of Powell River and Powell River Regional District, which increased 1.15 per cent and 1.53 per cent respectively over last year. Individual properties, however, will see larger ranges of change, somewhere in the minus five to plus 10 per cent range, or greater depending on circumstances.
Guy Gentner, a former resident of Delta who moved to Powell River after he retired from provincial politics, lives south of town and received a shock when he opened his property assessment. Instead of modest increases, what he saw was a sizeable loss.
He investigated further into neighbourhood land values and found the 18 properties on View Road lost a combined $684,000, 12 properties on Random Road lost $569,000 and the 13 properties on Stittle Road, where Gentner lives, lost $396,000, for a total loss of $1.65 million.
“I know that I should put my head in the sand and hope that someday someone is going to come along and pay some absurd price for my property,” said Gentner. “It’s a problem that needs to get fixed because we are going to continue to face slides and devaluation.”
Gentner also served as councillor for City of Delta and is particularly concerned about the increased number of landslips on the foreshore south of town. He said the regional district does not have the tools it needs, such as zoning requirements, building permits and legislated setbacks for properties, to protect property values.
As Powell River is hit with torrential rains without adequate drainage to manage stormwater runoff, the water runs down the slopes and reduces their stability.
Most regional districts in the province are ahead of Powell River Regional District in this regard, he said. Gentner blames the regional district’s “less is more approach to government” as the cause for the decrease in foreshore slope stability, particularly at a time when the coast is seeing an increase in storm activity, likely caused by climate change, he said. Gentner said neighbours on each side have had significant portions of their lots slough off into the sea.
“It’s a quandary,” he said, “and I think we’re at the tipping point here.”
Gentner said he hopes when homeowners who live up-shore from these more expensive properties start feeling an increased tax burden as the foreshore tax bills decrease, it will push the regional district to increase property regulation.
Colin Palmer, regional district Electoral Area C director, said he can not comment on Gentner’s explanation for falling land values in the area, but was quick to point out that while the amount of landslips may have contributed, it is his speculation that BC Ferries’ high fares also play a role.
On behalf of the Regional District Coastal Charters Group, Palmer wrote a report last year on the economic impacts BC Ferries’ operations have had on local economies of coastal communities. The report cited declines in assessed property values in ferry-dependent communities, particularly for Powell River and some Gulf Island communities.
“Powell River is not exclusive for property values going down. It’s happening all over the coast,” he said. “BC Assessment doesn’t come and inspect people’s property, they take the real estate sales in the area and they work from that. [Gentner has] got as much speculation as anyone else on why the property value has dropped.”
Palmer added that Gentner does raise a valid point about slope stability in areas B and C and the regional district recently released a landslide hazard study for the public. A number of open houses are also being planned for south of town residents later in the month.
Most of the time the province will say it’s the landowners responsibility, but there is a need for property owners to consider the consequence of altering the vegetation or drainage on slopes and the increased hazard it could bring for neighbours, said Palmer.
“There’s got to be some way for everyone to work together to deal with the fact that along the coast is not all rock,” he said. “It’s clay sitting on rock and it does move if you help it by clearing your beachfront. Life can get difficult for not only you, but for everybody else.”
Dawson said BC Assessment, a Crown corporation, has appraisers that take into consideration the evidence that comes up every year. That evidence, he explained, is usually the records of properties sold in the immediate area.
“If there is market evidence to support the fact that a certain characteristic in a neighbourhood, or of a certain property type, is coming into play, according to the legislation we are required to take that into consideration when we are setting the assessment,” said Dawson. “The assessments are required to be a reflection of market value, just as someone would take a look at the property and take into account all the positive characteristics and all the negative characteristics.”
He explained if portions of a property are sloughing away and there is evidence that showed it was a discount to the market value, appraisers would make an adjustment accordingly.
“Any negative characteristic on a property,” said Dawson, “needs to be taken into consideration.”
