After years of condo owners in Calgary watching the property assessments of their house-owning counterparts keep rising while their remained stagnant (or dropped), the start of 2024 delivered some interesting news.
Out of more than 500,000 property assessments mailed out at the beginning of January, condo owners saw the largest jump in their valuation, says the Calgary Herald. Based on market values calculated on July 1, 2023, and the physical condition of the property as of Dec. 31, 2023, condos saw the biggest jump in assessed values, with a 17% increase from the previous year. The median price for an apartment condominium is now $295,000, up from $255,000 last year.
The option of purchasing a condo is becoming more and more attractive as interest rates are still high at 5%. Condos are more affordable for the first-time buyer and often in more convenient locations with access to transit and amenities. With tons of new builds coming on to the market there are a number of brand-new options that are appealing due to their services and conveniences, such as concierges, gyms, and even pools and hot tubs.
Calgary Real Estate Board numbers reveal that in December of 2023, 399 condos sold in Calgary, an increase of 28.30% from 2022. There were also 373 new listings on the market, up 29.97% from 2023.
So far in January 2024 there have been 151 condos sold, up a whopping 55.67% from last year.
City of Calgary tax system for property assessments
The City of Calgary determines property assessments for condos through a comprehensive process considering various factors. The City employs a mass appraisal approach, factoring in the location, size, age, and features specific to each condominium unit. Professional assessors analyze real-estate trends, recent sales data, and property characteristics to establish a fair and accurate valuation.
Additionally, Calgary’s assessment process adheres to provincial legislation, which is meant to ensure consistency and fairness. Annual assessment notices are mailed out and detail a property’s determined value, with a lot more information available online. The process ensures that condo owners contribute to municipal taxes proportionate to the value of their properties, facilitating the funding of essential public services and infrastructure.
With the value of residential condos up by 17%, based upon the average condo price of $295,000 the average condo owner will pay approximately $1,246.97 in city taxes and $654.22 in provincial taxes for a total of $1,901.19 in residential taxes. Those with an average-valued condo will pay about $225.38 more in 2024, up about 13.45% or $18.75 per month.
Calgarians can check to see how much they may expect to pay this year on the City of Calgary website. Don’t forget that property tax rates are not completely finalized until the spring. City council still needs to pass its new property tax bylaw, which is typically approved in April after the provincial government’s property tax share is determined by its springtime budget.
The difference between a property assessment and real estate value
Property assessments and real-estate values are completely different entities. A property assessment is a valuation conducted by local authorities for taxation purposes and determines a property’s worth using factors like size, location, and amenities.
On the other hand, real-estate value is the market-driven worth of a property based on what a buyer may sell for and what a buyer may pay. Real-estate value considers broader market dynamics, recent sales, and property conditions, and is a basic reflection of what a buyer would be willing to shell out for a property. While property assessments guide tax obligations, real-estate value influences buying, selling, and investment decisions.
Property assessments can be challenged
For Calgarians wishing to challenge their assessment notices, the City’s customer review period will run until March 11. Homeowners can utilize the online assessment search tool at calgary.ca/assessment to scrutinize their residential property details and make comparisons with other properties in their price range.
Condo insurance from Lane’s
Condo insurance covers your personal property, liability, and the parts of your unit that are your responsibility. Policies may also be written to protect you from certain assessments levied by the condo association and to assist in recuperating expenses if you have to vacate your home. It also provides coverage for your unit in the event the condo corporation’s insurance policy does not respond to a loss or is not in force at the time of a loss.
The expert insurance brokers at Lane’s can help you find the very best condo insurance coverage at the very best price, and help suggest added coverages for extra protection that will not cost a lot. Contact us at our Calgary, Banff, Edmonton, and greater Alberta offices to learn more.
