Natural disasters, real estate market shape HRM property assessments

HALIFAX, N.S. — Natural disasters and market trends have had roles to play in property assessments, especially this year.

Assessments from Property Valuation Services Corp. (PVSC) are in the mail. They show that in Halifax Regional Municipality the total assessment roll has increased 15.8 per cent over last year — residential at 17.5 per cent and commercial at 8.7 per cent.

“What these numbers are reflecting is a strong market,” said Jeff Caddell, assistant director of operations for PVSC,during a news conference on Monday.

Strong demand and low inventory in the real estate market, the rising costs of labour and materials,along with natural disasters like wildfires and floods have all made a difference in assessments this year.

PVSC used market data as of Jan. 1, 2023 and an analysis of the physical state of properties as of Dec. 1, 2023 to determine the fresh assessments. That market data uncovered some trends and showed that while the strong real estate market chugged along into 2022, it slowed down toward the end of the year.

There were 39,784 property transactions in the province in 2022, according to PVSC’s data.

“In many rural areas we observed increasing market trends, especially properties influenced by water — on lakes and by the ocean. There really seems to be a trend in the rural areas.”

Natural disasters

“We had Fiona in 2022, but in 2023 we also saw some unique events that we’re not used to in this province through the wildfires and floods and so on. So it’s really important to us to ensure that we have an accurate reflection of the physical state of the properties.”

Over 150 structures were destroyed by the wildfires in the Hammonds Plains and Upper Tantallon areas in the spring and many homes and businesses, particularly in Bedford and Lower Sackville, were heavily damaged by flooding in the summer.

Caddell said properties that were damaged or destroyed by the floods were identified and inspected to make sure the assessments reflect the changes. They took aerial photographs and did physical inspections and will continue to monitor areas affected by natural disasters for market trends and rebuilding efforts, he said.

In cases where the buildings were destroyed, those properties will be assessed as land only.

Commercial property trends

Despite the rising costs of materials and labour, commercial development growth soldiered on throughout 2022 in Nova Scotia.

Business and industrial parks continued to see “significant market growth, and apartments continued to be a strong investment,” Caddell said.

There was also steady tenancy in the retail sector with increased leases, he added.

“However, the office sector, we saw it remain flat and that really speaks to that sector’s response to the shifting workplace requirements.”

There is 9.3 per cent growth in the commercial assessments roll across the province this year.

The CAP and appeals

Now that the assessments are in the mail, the clock is ticking for the appeal deadline, which is midnight on Feb. 8.

There were 13,367 appeals in 2023 — a busy year but not a record, Caddell said. Only a small amount of the appealed assessments were changed. Caddell said they see it as a welcome opportunity to explain to property owners how they landed at that number.

There are three levels for appealing an assessment: a PVSC assessor review, a Nova Scotia assessment appeal tribunal and then the Utility and Review Board. Appeals must be signed and emailed, mailed or faxed.

Most homeowners are eligible for the province’s Capped Assessment Program, which limits the annual increase in taxable assessment. About 68 per cent of residential properties qualify.

It is based on the Consumer Price Index. In 2022, the cap was 5.4 per cent, and in 2023 it was 7.7 per cent.

In 2024, the cap rate set by the province is 3.2 per cent.