In anticipation of a positive LNG announcement property values in Terrace shot up nine per cent in the last half of 2018.
The BC Assessment Authority released its annual snapshot last week of the real estate market across the province from July 1, 2018 — with Terrace seeing its single-family residential properties for 2019 now averaging $312,000.
In contrast, the 2017 assessment for family homes in Terrace dipped 1.3 per cent to $286,050.
Sheila Love, Terrace and Kitimat Re/Max managing broker, says this year’s assessment is good news but it’s already inaccurate to how the market is doing right now.
“Once that LNG announcement finally happened, our prices did go up. The next assessment is going to be even better.”
She says that the average sale price of a home in November 2018 had an actual market value of $428,000, a dramatic increase from 2017 when that value was averaged at $337,000.
She says she expects values are only going to increase.
“Everyone is anticipating that the spring is going to be very good for the Northwest, I think great for sellers. Buyers are going to have opportunities because there is going to be new construction,” says Love.
BC Assessment records show there were 21 new single-family residential buildings that began construction in 2018 and many more are expected this year.
“We’re already seeing it now, there are more people in town — things seem a bit busier. Now, residential is a priority. People are just concerned about getting here and once the LNG is up and going with the construction, you’ll start seeing secondary industry and demands for industrial and business properties.”
BC Assessment recorded midway through 2018 that light industry has increased 10.28 per cent while business developments have climbed 3.5 per cent.
The Horseshoe area of Terrace has seen the highest assessment increase, with its median value increasing 10.8 per cent. Southside is not far behind, with an increased median value of 8.3 per cent.
Although the Bench area has only increased by 2.9 per cent, its median value of $387,000 is Terrace’s highest for residential properties. Lower Thornhill’s growth increased by 5.9 per cent, while Upper Thornhill has gone up 3.5 per cent.
Property tax bills will be determined when the city’s budgets are set. But often the assessment doesn’t dramatically affect the property tax bill, especially if the increase is less than average for homeowners.
At press time the City of Terrace has not responded to interview and information requests from the Terrace Standard.
In Kitimat, residential property values increased by 20 per cent and are expected to rise in the coming years.