MPAC study released on impact of IWT’s on Residential Property Assessed Value

Notwithstanding an initial review of the MPAC report Abstract and policy support statements, when you look a little deeper and see the sale and assessed values displayed on D2, it appears the raw sale prices for the whole study are about 25% lower values within 1km vs. > 5km. In fact, the graph confirms that impacts are significant out to at least 5km (3 miles).

Based on D2, it would also appear they (MPAC) are in a good position to defend that they have generally not overvalued homes near turbines, since the Current Value Assessments (CVA) are consistent with time adjusted actual sale prices. But their opinion of no (statistically significant) impact near vs. far is at war with the factual sale price proximity trends found in the study.

Further, for environmental impairment analysis, the IAAO Standards discourage regression and instead recommend use of paired sales methodology, with direct, detailed comparisons of individual sale data, near and far from the environmental disamenity in question. They heavily cite the IAAO, as is appropriate, but seemed to have missed that most relevant standard regarding use of regression and limitations for exactly this kind of analysis.

As copied below the D2 bar chart, and found buried way back in Exhibit E, is an important conclusion. MPAC internally, directly contradict the Abstract opinion they have expressed on wind turbine impacts.

Many of the regression studies keep showing roughly 25% lower values near turbines when the raw data is sorted by distance, yet the statistical significance ends up indicating to the authors no impact on value. Perhaps they should consider use of recognized appraisal methodology for measuring proximity impacts from turbines.

Michael S. McCann
McCann Appraisal, LLC

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See also: Wind Turbines Devalue Falmouth Home 22 Percent Official 

Refusal of Old Leighlin wind farm lists property devaluation among reasons for turning down development

6 thoughts on “MPAC study released on impact of IWT’s on Residential Property Assessed Value

  1. The “elephant in the room” is the property that languishes on the real estate market for considerably longer than “normal” and is then withdrawn because it did not sell. Perhaps the owner did not receive any offers from interested buyers at the purchase price or would not consider the deep discounted devalued offers that were made. Regardless, no one wants to pay excessive property taxes on a property that is essentially unsaleable.

    • Because you can’t “reside” in a house since “industrial”
      wind turbines are 400 metres away!
      and you pay “residential property tax” !

  2. The issue is unsaleable property which is not taken into consideration for very obvious reasons.
    Only a private study of this issue would prove this. Local opposition to such a private study might be strong as this could kill the real estate market in IWT areas and most people don’t want to hear about the truth.

  3. What luck! …..off the hook till 2016

    ‘[excerpt] As MPAC works towards the next province-wide Assessment Update in 2016,
    qualified valuation staff will continue to study and analyse the Ontario real estate market
    including investigation of sales transactions
    to determine the impact of various factors –
    including IWTs
    – have on a property’s value.’

    Welcome to Ontario – destroyed by Liberals.

    • The real face of MPAC

      ‘[excerpt] As copied below the D2 bar chart, and found buried way back in Exhibit E, is an important conclusion. MPAC internally, directly contradict the Abstract opinion they have expressed on wind turbine impacts.

      Many of the regression studies keep showing roughly 25% lower values near turbines when the raw data is sorted by distance, yet the statistical significance ends up indicating to the authors no impact on value. Perhaps they should consider use of recognized appraisal methodology for measuring proximity impacts from turbines.’

      Gee – I wonder what the real estate market will be like in 2016?
      The ghetto will be built by then.

      Buy Local – you know the drill.

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