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Calgary Property Assessments: Fact or Fiction?

Posted by Jim Sparrow on Tuesday, January 5th, 2010 at 7:31pm.

Calgary Property Assessments: Fact or Fiction?

Calgary Property Assessment 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.

Calgary Property Assessment Market comps

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:

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.

If you're looking to sell or buy, do not hesitate to contact us.

We are prepared to work hard ensuring that your needs are met and that the result is more than you were hoping for. Nothing gives us more pleasure than your success and being with you through major life changes.

2 Responses to "Calgary Property Assessments: Fact or Fiction?"

Karen wrote: Can you explain why the Calgary property assessments are so different from what houses are currently selling for?

Posted on Sunday, January 10th, 2010 at 11:21am.

Jim Sparrow wrote: @Karen - The city of Calgary uses median selling prices of local properties to "estimate" what Calgary homes and condominiums are worth. The more you learn about this process the less likely you'll be to ever pay any attention to their contrived property assessments (as you can guess I don't place much value in the city's process). Add to this assessments aren't released until at least 6+ months from the time they're calculated, and you can get wildly optimistic / pessimistic property values that are up to 18 months old.

Posted on Sunday, January 10th, 2010 at 7:10pm.

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