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Residential homes in Calgary are covered in fresh snow. Brett Turner, co-owner of Calgary-based Redline Real Estate Group, says he’s had an increase in clients this year who have requested data on comparable sales, so they can try to appeal their assessments.MIKE BLAKE/Reuters

Some Calgary homeowners feel caught in the shift between a property market that was booming a few months ago, to one that's stalled.

With the Jan. 5 release of property assessments, most homeowners saw an increase in the value of their homes – even though the market softened in the past three months, following the drastic drop in oil prices. In the new climate, their assessments don't seem to jibe.

Over all, this year's valuations were up 10 per cent, according to the city assessor, based on what homes would have been worth as of July 1, 2014. The year previously, in 2013, values had gone up 6 per cent.

But Ral Glanz, an engineer who bought a duplex 2 1/2 years ago, in the growing neighbourhood of Richmond Hill, says he wouldn't be able to sell his house for the newly assessed amount. He purchased the 2,000-square-foot house for $710,000 and it's now assessed at 17 per cent more, for $832,000. He says his taxes are $4,800 a year.

"I've seen an increase of almost 20 per cent over the last two years, and that's a big jump. And I also know folks in neighbourhoods nearby and they are unable to sell their property for what it's being assessed at."

Mr. Glanz, 36, understands that his neighbourhood is undergoing transformation, with many of the old houses getting knocked down for new duplexes. But he argues that his house is eight years old, and isn't worth the same as the newer houses in his neighbourhood, with high-end kitchens and bathrooms.

"When everybody is making a bunch of money, they want the best of the best. A new buyer comes in and says, 'If I am spending $800,000, I want the latest stuff.'

"My house isn't comparable to those houses that are newly finished. If I could sell my house for the $832,000 that they are claiming it's worth right now, I'd take the money and run."

Brett Turner, co-owner of Redline Real Estate Group, says he's had an increase in clients this year who have requested data on comparable sales, so they can try to appeal their assessments.

"I've had an increase this year compared to last because of a bit of a change in the perception regarding sales prices this year relative to 2014," says Mr. Turner.

"People aren't as confident that their property is worth as much as last year. They are asking for sales similar in price to their house so they can appeal."

Mr. Turner owns several properties but isn't concerned about his own assessments. He says part of his clients' reaction might be due to general tension around the market.

"Last year, if [the valuation] was close, maybe they would have thought it's not such a big deal. But this year, with a turbulent real estate market, more people are calling it into question."

City assessor Nelson Karpa says that recent changes to the market wouldn't have been taken into consideration on this year's assessment. That's because according to legislation, assessments are based on the residential property's value as of July 1, 2014.

"So sales in the latter part of December, they wouldn't play into any part of that July 1 valuation," says Mr. Karpa. "We have been asked the question by many people, 'What's going to happen?' But we are not in the forecasting business. We're in the what-has-already-happened business."

He adds that his department is on top of any market changes. If property values have dropped by July 1, 2015, that change will be reflected in assessments released in January, 2016.

"We will look at all sales preceding July 1st of this year, and those sales will form part of next year's valuations."

Although he has observed a boost in the number of listings, he hasn't witnessed a significant drop in house prices so far.

"I can't predict what our values will be come July 1st of this year, but we are not seeing any dramatic changes. We are seeing some sales that are lower than we would have expected, but at this point we're not seeing dramatic changes in the marketplace.

"I don't think we'll see the 10 per cent we saw last year, but I also don't anticipate seeing a tremendous drop. But we are keeping a close eye on it."

Homeowners have until March 6 to make an appeal if they want to dispute their assessment. Mr. Glanz has decided against an appeal.

"To be honest, I've been dissuaded. So I am going to suck it up," he says.

So far, Mr. Karpa hasn't seen a spike in appeals this year.

"We're pretty much at where we were last year," he says. "We've got a week's worth of time left, but we're not anticipating a great change from last year.

"People generally understand that by legislation we were required to value their home as of July 1st, 2014. They understand the fixed valuation date."

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