Property Owners

Aggregate Sales Data

Introduction
Understanding the Statistics
MPAC Corporate Quality Standards on Ratio Studies
Aggregate Sales Data - 2012 Current Value Assessment Distribution for Residential and Recreational Properties (Map)
Glossary of Terms for Market Model Reports

Introduction

The mandate of the Municipal Property Assessment Corporation (MPAC) is to assess all real property in Ontario at current value.  Current Value “means, in relation to land, the amount of money the fee simple, if unencumbered, would realize if sold at arm’s length by a willing seller to a willing buyer”.

In establishing 2012 current values for residential, recreational and condominium properties, MPAC has applied the sales comparison approach, which is typically considered the best valuation method for residential, recreational and condominium properties by the appraisal industry.  

The sales comparison approach is based on the theory that the current value of a property is directly related to the sale prices of similar properties.  This approach has been used in many of the major jurisdictions in North American.

Note: In areas where there are few sales or inadequate data information, the sales comparison approach may not necessarily have been used and another approach to value was utilized.

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Understanding the Statistics

When the sales comparison approach to value is used, values are tested to ensure equity, accuracy and uniformity, by using a sales ratio study. A ratio study compares assessed values to market values and is the primary tool used when reviewing mass appraisal.  The ratio of the assessed value to the sale price (or time adjusted sale price) of a property is called the Assessment to Sale Price Ratio (or ASR).  The Assessment to Sale Price Ratio is calculated by dividing the assessed value of the property by the sale price.

For example, a property that recently sold for $300,000 (S) was last assessed at $294,000 (A) by the Assessor.

The ratio of A/S is $294,000 / $300,000 = or 0.98.

The assessed values, as of January 1, 2012, will be used for the 2013-2016 property tax years. Sales used in analysis are within a 3-5 year period prior to the valuation date. Improved residential, recreational and condominium property types are included in the aggregate sales counts and statistics.

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MPAC Corporate Quality Standards on Ratio Studies

The following Corporate Quality Standards on Ratio Studies are intended to be applied at the jurisdictional and/or market area level.  Subsets or stratifications of data with less than 30 sales are not required to meet these standards due to small sample sizes and related sampling errors.  The calculated measures by themselves are not proof that a standard has not been met only an indication.  Additional statistical measures and tests are required to prove that a standard has not been met.   In low-value market areas, ratio studies tend to be distorted and other quality standards based on residuals may be employed.

 

Residential, Recreational and Condominium Property Types Measure of Central Tendency Median Measure of Variability COD
Urban Homogeneous Market Area .98 - 1.02 10.00
Urban Heterogeneous Market Area .98 - 1.02 15.00
Rural Market Areas (Except Northern Markets) .95 - 1.05 15.00
Rural Market Areas (Northern Markets) .95 - 1.05 20.00
Condominiums (Except Northern Markets) .98 - 1.02 10.00
Condominiums (Northern Markets) .95 - 1.05 15.00
Recreational Waterfront .95 - 1.05 20.00
Vacant Land (Except Northern Markets) .95 - 1.05 20.00
Vacant Land (Northern Markets) .90 - 1.10 25.00
Recreational Waterfront Vacant Land

.90 - 1.10

25.00


Click on the links below for more information:
Aggregate Sales Data - 2012 Current Value Assessment Distribution for Residential and Recreational Properties (Map)
Glossary of Terms for Market Model Reports

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