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A lot of people have been asking me about the city of Winnipeg’s property assessments and how that works so I figured I would help explain it.
Every two years the city of Winnipeg will use a mathematical model to determine a property’s estimated market value for the purpose of calculating the property taxes of that property. The assessed value is based on a three year rolling average of the year 2 years prior to the assessed date. For example, the proposed 2025 assessed values are based on the April 2021-April 2023 sold data for similar homes.
⚖ While the assessed value can be a good reference point for understanding a home’s value, the assessed value is not the market value. The market value is based on recent sales (usually within the past few months) to help determine a property’s worth. The assessed value is intentionally delayed so that the city can adjust the mill rates (for property taxes) rather than adjusting the value of everyone's property.
✨ Another important thing to consider is that the assessed value does not consider the condition of the house or the finishes of the house. Obviously the condition of a property is going to affect the market value so the assessed value should never be taken as a guarantee in potential sales price.
In recent years the assessed value has been below the market value due to the dramatic appreciation in housing. However, there are cases where the assessed value is below the market value because the city has not re-assessed that house yet, or there are not enough recent sales to reflect the true appreciation of a neighbourhood.
If you are a buyer and want to understand if you are overpaying or underpaying for a property your real estate agent will help guide you through that process. Similarly, if you are a seller and you are wondering what your property is worth, a real estate agent or appraiser can walk your property and give you an estimate based on the market value and not the assessed value.
If you are curious to know what your property is worth or you are just starting to think about buying a new property and are unsure what the market is like, reach out to me and we can discuss all your questions so that you don’t have to enter the market uninformed.