Real estate market influences City property assessments

By Lethbridge Herald on January 12, 2023.

The City of Lethbridge mailed notices to all city residential and commercial property owners on Jan. 4. The City says it has seen a 7.65 per cent increase in property values. Herald file photo

Al Beeber – LETHBRIDGE HERALD – abeeber@lethbridgeherald.com

Residents opening their city property assessments who see an unexpected increase aren’t alone.

The City of Lethbridge mailed notices to all city residential and commercial property owners on Jan. 4.

And residents may see a jump thanks to a hot real estate market last year.

Larry Laverty, assessment and taxation manager for the City of Lethbridge, said Thursday the city has seen a 7.65 per cent increase in property values.

In comparison, Calgary residents – according to a report out of that city – can expect to see a 12 per cent hike in the value of their properties when they get their assessments.

“We saw a 7.65 per cent increase in residential property values this year. That is based on the sales that have occurred in the municipality and it’s a value as of July 1, 2022. So the market was really strong at that point – it’s actually still very strong and prices have definitely increased dramatically over the last couple of years,” said Laverty.

If a property value went up around the average rate of 7.65 per cent, “you will probably see somewhere around a 5.1 per cent tax increase,” said Laverty. That increase is what council approved annually for the next four years after approving its 2023-26 operating budget last fall.

Before budget deliberations began, city treasurer Darrell Mathews said tax increases per single family residence are based on an average market of value of $285,800.

Laverty said Thursday residences valued around the average can expect to pay close to that 5.1 per cent.

“It’s not uncommon,” he said of higher assessments.

“Other cities, too, have seen massive increases in assessment. The last couple of years have been very strong,” he said of the housing market.

“And the sales are there to support the values,” Laverty added.

When determining assessments, the City looks at all sales in the municipality. That information is used to assess properties, the main characteristics being location, size, and condition and market value can vary based on that.

Improvements to a property can come into play. If a person has an older house and upgrades were done then the house is worth more than it would have been without the upgrades, said Laverty. The construction of a garage can also increase a home’s value.

According to the Re/Max 2023 housing market outlook, prices nationally are expected to fall by 3.3 per cent in 2023 compared to 2022 with about 60 per cent of Canada’s markets returning to a balanced condition. However, prices are expected to increase in some places including Calgary (seven per cent) and Edmonton (three per cent).

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