Assessed Value vs. Market Value: What Your Home Is Actually Worth in BC

In British Columbia, assessed value and market value often get lumped together — but they serve very different purposes. Confusing the two is one of the most common (and understandable) misconceptions homeowners have, especially when headlines start flying and tax notices land in mailboxes.Let’s clear it up.

What Is Assessed Value?

Your assessed value is determined annually by BC Assessment. It represents an estimate of your property’s value as of July 1 of the previous year, and its primary purpose is property taxation.A few key things to know:

• It’s based on past sales data, not current market conditions
• It uses standardized assumptions (average condition, typical use, etc.)
• It does not account for today’s buyer behaviour, interest rates, or market momentum

In short: assessed value is a government tool for calculating taxes — not a pricing strategy.

What Is Market Value?

Market value is what matters in the real world.It’s the price a willing buyer is prepared to pay a willing seller right now, given current conditions. Market value is influenced by factors that change constantly, including:

• Supply and demand
• Interest rates and lending conditions
• Recent comparable sales
• Renovations and upgrades
• Neighbourhood activity and buyer sentiment

This is why homes can sell above, below, or sometimes nowhere near their assessed value. The market doesn’t care what last July thought your home was worth.

Why the Gap Exists

Because assessed values lag behind the market, they can feel wildly out of sync — especially in fast-moving or shifting markets like we’ve seen across Metro Vancouver and the Fraser Valley in recent years. Think of assessed value as a rear-view mirror and market value as the windshield. One tells you where you’ve been; the other tells you where you’re going.

The Bottom Line

• Assessed value is for taxes
• Market value is for real life

If you’re considering selling, buying, refinancing, or simply want a clear and accurate picture of your position, understanding your current market value is far more meaningful than relying on an assessment notice. And if your assessed value made your eyebrows raise this year, don’t worry. That reaction is basically a BC homeowner rite of passage.