A report on residential sale price trends released by the Municipal Property Assessment Corporation (MPAC) revealed that average Ontario home prices have risen 17 per cent over the past four years. MPAC’s Residential Sale Price Index measures average sale price trends in the province for all residential properties. MPAC completes a uniform, province-wide property assessment every four years. The assessment is based on analysis of comparable sales of neighboring properties.
The report noted some of the most significant growth was in cities in northern Ontario with a 29 per cent jump in home prices in the Timmins area, a 25 per cent increase in the Sault Ste. Marie area and a 19 per cent rise in the Sudbury area. Population growth in response to the booming mining industry in the North contributed significantly to the price increase. Despite the growth, home prices in northern Ontario remain fairly low when compared to the rest of the province. For example, an 1,100-square foot bungalow in Sault Ste. Marie sold for an average of $152,616 in 2011.
As a comparison, home prices in London saw seven per cent growth and those in Barrie increased by six per cent over the same four-year period. Average home sale prices in Toronto were up by 23 per cent.
Ontario homeowners will receive Property Assessment Notices this fall with the assessed market value of their property as of January 1, 2012. Increase in assessed property value could lead to increase in property taxes. It is usually the case if the assessed value of one’s home has increased more than the average in the community, region and province.
In accordance with the new phase-in program, market increases in assessed value between January 1, 2008 and January 1, 2012 will be phased in over four years (2013-2016). For example, if the assessed value of your home increased by 14%, while the rest of the comparable property in the area experience a 10% growth, you will pay a 4% difference in property taxes. This difference will be phased in gradually at 1% a year over four years. Where the value decreases, the benefit will be applied immediately.
Follow the link to view full report.