The City of Edmonton is in the process of mailing out 2017 property assessment notices and according to the city, most property owners will see a slight decrease in the value of their properties.
The typical single-family detached home dropped in value by 2.7 per cent and is now valued at $397,000. Last year, the average single-family home in Edmonton was assessed at $408,000. The city said the drop in property values is a reflection of the slowing economy.
READ MORE: Expanding economy but ‘very modest growth’ for Edmonton in 2017: chief economist
The average condominium, townhouse and duplex in Edmonton dropped in value by 2.3 per cent. Apartment buildings decreased in value by 9.7 per cent. Commercial and industrial properties decreased by 4.9 per cent.
“The downward pressure on property values is largely due to a softening economy and higher than typical levels of housing inventory this past year,” said Rod Risling, assessment and taxation branch manager with the City of Edmonton.
“Market value is widely considered to be the fairest system for distributing property taxes and therefore forms the basis for establishing how much municipal and provincial education taxes property owners pay in proportion to the value of the real estate they own,” Risling said.
Not all properties reflect the average change in assessed value year after year. The following five neighbourhoods have seen the value for single-family homes increase the most, as of July 1, 2016:
- Central McDougall – 12 per cent increase
- Boyle Street – 10.2 per cent increase
- Queen Mary Park – 6.8 per cent increase
- Oliver – 6.7 per cent increase
- Kensington – 5.6 per cent
“Every year we have neighbourhoods that change in value different than the average,” Risling said. “Every year the assessors review the sales that occur in some of these neighbourhoods, they look at customer feedback. At the end of the day, we reflect what the market tells us.
“Depending on the sales, it could have a big effect on the value of the homes in that area.”
The five Edmonton neighbourhoods that saw the biggest decrease in value for single-family homes are:
- Rural North East Horse Hill – 16 per cent decrease
- Skyrattler – 6.1 per cent decrease
- Terrace Heights – 5.9 per cent decrease
- Patricia Heights – 5.8 per cent decrease
- Queen Alexandra – 5.8 per cent decrease
In December, Edmonton City Council approved a 2.85 per cent tax increase for 2017.
“If your home declined 2.7 per cent, you’ll see the average tax increase, which equates to about $80 (per year) or $7 per month,” Risling explained. “If you saw an increase in the value of your home, you’ll see a tax increase greater than what council approved in December. If your market value or assessed value actually decreased more than the 2.7 per cent, you’ll see something less than that 2.9 per cent or maybe even a decline.”
READ MORE: Edmonton City Council approves 2.85% tax hike for 2017
A total of 388,000 properties were assessed this year, contributing to a total taxable assessed value of $115.6 billion for residential properties and $54.7 billion for non-residential properties and apartment buildings.
Risling said assessments reflect market value as of July 1, 2016. Anyone who sees incorrect information on their property assessment notice is asked to contact the city by calling 311 or filing a formal complaint by March 13, 2017. Last year there were about 2,400 complaints.
Property tax bills will be delivered to Edmonton property owners in May.