Calgary Property Assessments: Fact or Fiction?

According to the 2010 Calgary property assessments the city mailed out January 4th, Calgary property values dropped by 13% from the previous year.

Clients often call me this time of year questioning their property assessment. The city's assessment process confuses many property owners, who often believe their Calgary home or condo is worth far more or less than the posted assessed values.

Let's be clear about one thing: city property assessments have no relationship to the current market value of Calgary property. The 2010 annual property assessments reflect the estimated market value of property as of July 1, 2009 and include any physical changes that have occurred up to December 31, 2009. The Calgary market has shifted dramatically over the past 12 months, and the city's assessement estimates from over seven months ago are next to meaningless in the current market.

To illustrate that point I randomly selected 25 sales from the Calgary MLS today *January 5, 2010* representing Single Family Calgary homes and condos in all parts of metro Calgary.

Of the 25 Calgary property sales, 22, or 88% sold for more than assessed value. Sale price variance ranged from 6.3% under assessed value to 40.2% over assessed value (average sale price was 10.6% higher than assessed value).

According to the city there are 7 communities, all in southwest Calgary with a MEDIAN assessment of at least $1-million:

• Belaire @ $1,430,000
• Rideau Park @ $1,340,000
• Upper Mount Royal @ $1,330,000
• Roxboro @ $1,320,000
• Britannia @ $1,195,000
• Eagle Ridge @ $1,385,000
• Elbow Park @ $1,030,000

As always, market dynamics mean prices can change quickly, and your best resource is a Calgary REALTOR. If you're interested in a current market assessment of your Calgary home or condo, please contact the Jim Sparrow Group at 403-252-5900.