Are BC Assessments Accurate? A Look at 2025 Sales Trends
With the release of BC Assessments' annual property valuations two weeks ago, many buyers, sellers, developers, and home builders in the Kelowna real estate market are wondering how these assessments stack up against actual sale prices. As we dive into the 2025 sales trends and compare them with property assessments, it's clear that understanding the relationship between assessed value and market value is crucial for making informed decisions—whether you're buying, selling, or investing in Kelowna.
How Accurate Are BC Assessments for Kelowna Real Estate?
The answer isn't straightforward. While BC Assessments offer an important snapshot of property values, they are based on market data from six months prior, which means they can sometimes lag behind current market conditions. In the first two weeks of 2025, we've seen a variety of sale-to-assessment ratios across different property types in Kelowna, which suggests that BC Assessments may not always be an accurate reflection of current market trends.
On average, homes in Kelowna are selling for approximately 1.002 times their assessed value, but there are notable exceptions. Some properties are selling for up to 1.354 times their assessed value, while others are going for as low as 0.82 times their assessed value. The volatility in the Kelowna real estate market—driven by factors like property type, location, and condition—means that sellers, buyers, and developers need to carefully assess how these numbers align with their goals.
Key Insights for Sellers, Buyers, and Developers in Kelowna
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For Sellers: If you’re selling in Kelowna, it's important to recognize that the assessed value may not reflect what the market is willing to pay. As the market fluctuates, particularly for single-family homes, your property's value may be higher or lower than the BC Assessment suggests. It's wise to review recent sales data and consult with a local real estate agent to understand where your property stands in terms of demand.
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For Buyers: If you're considering buying a home in Kelowna, especially in areas like West Kelowna or Lake Country, be aware that assessed values might not align with the current asking prices. In some cases, homes may be selling for more than the assessed value, so ensure you're not overpaying by understanding the local market trends.
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For Developers & Home Builders: Developers looking to invest in Kelowna’s real estate market, especially in multifamily infill projects, need to factor in the variability of property assessments when estimating project costs and potential returns. The ongoing rezoning and new construction efforts in the area mean property values are shifting, and assessments may not fully reflect these developments.
2025 Sales Trends in the Central Okanagan
Looking specifically at the Central Okanagan, where Kelowna is a key market, we can see how assessed values have changed compared to 2024. In general, many properties have seen relatively flat or modest changes in their assessed values:
- Kelowna Single-Family Homes: Decreased by -1%, with a typical assessed value of $938,000.
- West Kelowna Single-Family Homes: Decreased by -1%, with an assessed value of $904,000.
- Lake Country: Dropped by -3%, with an assessed value of $930,000.
- Peachland: No change, remaining at $887,000.
In contrast, strata properties have shown some divergence in market performance:
- Kelowna: Decreased by -4%, with an assessed value of $493,000.
- West Kelowna: Increased by +3%, with an assessed value of $538,000.
Should You Appeal Your BC Assessment?
If you believe your BC Assessment doesn't accurately reflect your property's value in light of the current market, you might consider appealing it. The deadline to appeal is January 31st, so it's important to act fast. An appeal could help lower your property taxes, especially if your property has seen a decrease in market value or is currently selling below its assessed value.
Helpful Resource: To assist you with this process, I’ve created a 9-Step Guide to Understanding Your Property Assessments and How to Appeal Them. Click here to access the guide and start your appeal process today.
Market Insights for 2025 and Beyond
The Southern Interior of BC saw an overall increase in property assessments, growing from approximately $315 billion in 2024 to nearly $323 billion in 2025. This increase is largely attributed to new construction, subdivisions, and property rezonings, contributing an additional $5.29 billion to the total value.
For developers and home builders, these changes highlight the potential for growth in certain areas, especially as new construction and infill multifamily projects become more prevalent. However, the Kootenay Columbia region could see more pronounced changes in assessed values, with a range of 0% to +10% changes expected for some properties.
Final Thoughts
Whether you're buying, selling, or building in the Kelowna real estate market, staying informed about BC Assessments and understanding how they compare to actual sale prices is key to making strategic decisions. As we move through 2025, market dynamics are likely to continue evolving, so be sure to consult local experts and consider appealing your assessment if you feel it's not reflective of your property's current value.
Explore more real estate trends in Kelowna and stay ahead in the market by regularly reviewing BC Assessments, local market data, and expert advice.
Mark and Maddie Coons
Selling Kelowna Real Estate Group
Tel: 778-744-0872
