Okanagan real estate values take a hit

Home assessments have been arriving in the mail for property owners, and it seems real estate values in the Okanagan have taken a hit compared to the rest of B.C.

Property across the province has been assessed 6.55% higher than 2011 but Okanagan assessments are down.

Property values in Penticton fell 0.44% and values dropped 0.61% in Kelowna.

But the biggest hit was in Vernon, which saw a 2.27% tumble in overall property values.

The residential sector saw the biggest decline: Penticton values dropped 1.2%, Kelowna 1.81% and Vernon 3.1%.

The average Kelowna detached home is now assessed at $504,000, down from $511,000.

But there was some good news: assessments for commercial and business real estate sectors were up.

Penticton saw those property values increase 4.85% while Kelowna had a jump of 8.32% and Vernon jumped 6.18%.

Commercial property values increased as much as 15% in some communities.

Real estate professionals discourage placing too much weight on your property assessment.

“The assessed value is never truly reflective of what market value is of a home,” said Elton Ash, Regional Executive Vice President for Re/MAX of Western Canada. “They are typically behind by a year or so.”

While Okanagan real estate has been buoyed by vacation ownership in the past, it appears that market has since dried up.

Ash says Albertans and people from the Lower Mainland who previously flocked to the Okanagan are instead snapping up properties in the Sun Belt of the U.S. thanks to attractive real estate values.

Despite economic struggles, analysts say the increases in some Okanagan sectors indicate further price stability if not slight increases into 2012.

“People want to live in the Central Okanagan. They want to come to Kelowna. We will see markets go up and down but why is Kelowna average priced at $504,000? Because it is where people want to live,” Ash said.

The Okanagan Region assessment total is approximately $88.1 billion, which represents around 7.9% of the total B.C. taxable property roll of $1.1 trillion.