Based on coverage from Global News, The Globe and Mail, StreetInsider, Financial Post, and Castanet.
Lower Mainland Property Values Decline
Property assessments for 2026 have been released in British Columbia, revealing a notable decline in property values across the Lower Mainland. The average value of a single-family home in Vancouver has decreased by five per cent, with Surrey experiencing a six per cent drop. Richmond and White Rock saw even steeper declines of eight to nine per cent. Condo values have also taken a hit, falling by two to five per cent across the region. The total assessed value for the Lower Mainland has decreased from approximately $2.01 trillion in 2025 to about $1.92 trillion this year.
Northern B.C. and Kootenays See Increases
While the Lower Mainland grapples with declining property values, Northern B.C. and the Kootenays are experiencing a different trend. Some properties in these areas have seen an increase in value, averaging around 15 per cent. This contrasts with the more stable assessments on Vancouver Island and the Southern Interior, where values have fluctuated between a five per cent decrease and a five per cent increase.
Interest Rates and Immigration Impact Market
Experts attribute the changes in property values to shifts in interest rates and immigration patterns. Bryan Murao from BC Assessment noted that high interest rates have played a significant role in the market's softening. Tom Davidoff from UBC's Sauder School of Business highlighted that the recent trends in immigration and interest rates have negatively impacted property prices, a stark contrast to the previous five years of positive growth. Davidoff anticipates mild price declines in 2026 unless immigration levels rise or the Bank of Canada further reduces interest rates.
Homeowner Grant Threshold Adjusted
In response to the changing property values, the B.C. Ministry of Finance has adjusted the threshold for the homeowner grant program. The new threshold is set at $2.075 million, down from $2.175 million last year. This is the first reduction in the threshold since 2020, reflecting the moderation in home prices across the province. The grant aims to provide property tax relief, and homeowners with properties valued above the threshold may still qualify for a partial grant.
Property Tax Implications
Despite changes in property assessments, it's important for homeowners to understand that these do not automatically translate into changes in property taxes. As Murao explained, the impact on property taxes depends on how an individual's assessment changes relative to the average change in their community. Homeowners concerned about their assessments can contact BC Assessment for clarification or file a Notice of Complaint if they believe their assessment does not reflect the market value as of July 1, 2025.
Southern Interior and Okanagan Trends
In the Southern Interior and Okanagan, property assessments have shown varied trends. The region's total assessments have increased from about $323 billion in 2025 to nearly $330 billion this year, driven by new construction and rezoning. In the Okanagan, most communities experienced modest changes, with values generally fluctuating between a five per cent decrease and a five per cent increase. However, Lytton stands out with a 30 per cent rise in assessments, attributed to ongoing recovery and rebuilding efforts.
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Coverage was consistent across the sources, with all reporting on the decline in property values in the Lower Mainland and increases in Northern B.C. and the Kootenays, as well as the impact of interest rates on the market. No meaningful differences in coverage were found across the sources provided.
