Saturday, 31 March 2007

Real Estate Assessment Debate

May I introduce some professional research and conclusion into the debate on so called skyrocketing property assessments? My searches of the MLS® database available to me as a member of the Greater Moncton Real Estate Board reveal the following information.

284 detached single family freehold properties in the City of Moncton were sold on MLS® in the second half of 2006. Analysing these 284 sales reveals that only 32 sold below their assessment. Of these 32, one was a former marijuana grow operation seized by the federal government, five were sold under power of sale, and three were estate sales. All these selling situations are not conducive to achieving a higher market sale price and in my opinion they should not be considered.

Thus, I will categorize 23 of these 284 sold properties as probably over assessed in 2006. My analysis also shows that of these 23 sales, thirteen sold for amounts within 5% of their assessed value. In the City of Moncton in the second half of 2006, assessments exceeded sale prices by more than 5% in a mere 10 of 284 sales. 252 sold for more than their assessments.

Now if anyone wants to fire off a skyrocket, guess how many of the 284 sold for more than 125% of their assessment.

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