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The total value of all residential and commercial properties in Nova Scotia exceeded $200 billion last year, with the increase in home values and new residential construction mostly occurring in larger urban centres outside Halifax Regional Municipality.
Jeff Caddell, director with the Property Valuation Services Corporation, said over the last two years, sales and construction in the housing market have continued to shift away from higher-priced properties.
“It appears, just based on those trends that we’re seeing, that there is more of a demand for lower-priced homes outside of those urban areas,” he said.
“We’re seeing more of a focused demand for homes, those smaller-type homes, semi-detached townhouses, duplexes, multi-unit. Relatively speaking, more affordable homes, more moderately priced, is where we’re seeing the highest demand and the market growth.”
Residential growth across the province is up eight per cent over the previous year, while the value of commercial properties rose by six per cent.
Commercial property values are based on a number of factors that can include replacement cost, sales prices and income potential.
On the commercial side, business properties in Halifax and hospitality accommodations around Nova Scotia are increasing in value, with tourism properties rising more than 20 per cent across Cape Breton Island, Caddell said.
Notices in the mail this week
“It’s a reflection on the economic conditions back in 2024, 2023 … many [tourism] operators were reporting they were recovered from the pandemic downturn in that industry,” he said.
The corporation is mailing out residential and commercial assessment notices to each property owner this week.
Property values are one factor municipalities use to determine tax rates, which are usually set in the spring.
The province also caps residential assessment increases at the rate of inflation, unless a property is new or has been sold.
The cap this year is set at 2.6 per cent and is intended to protect homeowners from large tax increases due to market changes.
Caddell said the provincewide residential growth of eight per cent is down from the previous year’s 9.8 per cent and the 17 to 18 per cent increases in the recent past.
However, the housing market remains steady and that helped overall property values reach $206 billion, he said.
“It’s an indication of markets continuing to be strong. We’re seeing increases year over year, [but] not at the same rate that we saw during the pandemic back in the 2023-24 [assessment] roll.”
Cape Breton Regional Municipality’s residential assessment grew by 12 per cent last year and its commercial properties increased by 13 per cent.
Appeal deadline Feb. 12
Caddell said commercial growth in CBRM was mostly a result of tax-exempt properties, such as hospitals.
The property valuation corporation, which operates separately from but is funded by municipalities, also handles assessment appeals, which must be received by Feb. 12.
Details on assessment changes and how they are determined are available on the corporation’s website.
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