Ontario property owners will see a double-digit increase on their assessments because of the hot housing market and because the province's property assessment freeze has lifted, a real estate industry expert warns. Maureen O'Neill, president of the Toronto Real Estate Board, says the median price of a detached home in the GTA has increased about 20 per cent since the last assessments were done in 2005.Three years ago, the median price of a detached home in the GTA was $335,000. Today, it's $403,000, O'Neill said. "Condominium and apartment owners will also see a whopping 27 per cent increase in their property assessments"
"In 2005, the median price of a condo or apartment was $192,000. Today, it's $245,000", O'Neill said. "They've seen appreciation and therefore they're going be taxed accordingly. Property owners are going to experience quite a dramatic shock."
Homes in east Toronto will be particularly hard hit, as assessments will rise about 31 per cent.
The province's three-year freeze on assessments lifted on January 1. The Ontario government, however, has introduced a plan to spread out any assessment increases over the next four years.
NDP Leader Howard Hampton, however, said the government's strategy, including the freeze, has made the housing assessment ordeal worse. "There's a big problem here. The property tax is not based upon someone's income, it's not based on my ability to pay," Hampton said.
The Municipal Property Assessment Corporation came under fire years ago for conducting inaccurate assessments. The agency performed 500,000 on-site inspections last year in its bid to boost accuracy.
Property owners will be receiving their new assessments in August and September.
Want to know more? Call Toronto real estate agent Alex Malkhassiants: (416) 723-9383.
As a Realtor in the Phoenix, Arizona area, I try to watch trends for real estate in other locations as well. Given some of the issues my local market faces are similar to other markets and more broadly interconnected to events and industries on a more global scale, I enjoy your comments on the Toronto market. One thing that would be great to see is your take on whether Canadians are truly looking south for investment given the strength of the Canadian dollar and the sagging markets here. This is something reported on here with anecdotal information only that this is happening. Thanks again for your blog here and the insights on your local market. Dave Lorti
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