2003 house prices

toocan

Ive narrowed down a shortlist to 2 houses (as a FTB) and they are both in good areas although at slightly different ends of the market

one is a 3 bedroom end terrace that needs renovating (asking price is 115 but will sell for 100) similar houses on the street are 'currently' on the market for 130 - 135

the other is a georgeous semi detatched house in perfect condition (asking price is 190 but might take 175 was originally 210 in jan)

now ive done some research into the streets and the houses themselves in regard to sold prices throughout the years.

the first house the terraced house hasnt been on the market for a long time but on that road in 2003 the house prices where around 80 - 90k for similar properties.

the other house the semi detached house which in 2003 the exact same one sold for 167k which suprised me.

To my untrained eye it looks like the 2nd property and the area hasnt really increased much in price in terms of % since 2003 would that mean any potential fall in value be smaller to? therefore being the better investment for minimising the impact of the current climate?

carolt

Maybe, though someone may have overpaid in 2003 on the 2nd house - look at other houses in the street, and compare with previous/later years to see if it fits the general pattern.

Or wait another 2 months, and compare to 2002 prices?

toocan

carolt wrote: »

Maybe, though someone may have overpaid in 2003 on the 2nd house - look at other houses in the street, and compare with previous/later years to see if it fits the general pattern.

Or wait another 2 months, and compare to 2002 prices?

the house a few doors down went for 174k the year before. then the previous sales where 2000 and prices where 90 - 110k

it seems very strange. is there anywhere else i can get info from?

teabelly

This is quite common in a lot of areas. Prices reach a certain level and don't go beyond it. Then something will change eg new employer moves in or current one expands to create demand, or local wages increase. Then prices bubble up again to a new level. If they have been static for a few years then if the local economy remains stable or improves prices will tend towards rising rather than falling, especially if there is a shortage of suitable property to buy. Eg all new build flats but everyone wants houses. Flats will fall in value but houses will rise as there are more people chasing them. It's all down to supply and demand.

Mouseprice.net and zoopla both have automatic valuation models so if you know the details of the house then you can see what they reckon.

sympatex

Following on from TeaBelly, I've been looking at 2003 prices of houses in a street i'm interested in buying in. I unexpectedly found that houses were selling then for what they are up for now. The house that i am specifically looking at is up for £230,000 now, and was bought in Nov 2004 for £230,000. For me and my gf to buy it we need 10% off however given they bought it for 230,000 i very much doubt they would be able or even willing to sell for that. (£207,000) This is in the south east approx 40miles from central london so HPI hasn't happened everywhere. In the local housing market i can find some big differences and in this case noe difference at all in FOUR years.

toocan

teabelly wrote: »

This is quite common in a lot of areas. Prices reach a certain level and don't go beyond it. Then something will change eg new employer moves in or current one expands to create demand, or local wages increase. Then prices bubble up again to a new level. If they have been static for a few years then if the local economy remains stable or improves prices will tend towards rising rather than falling, especially if there is a shortage of suitable property to buy. Eg all new build flats but everyone wants houses. Flats will fall in value but houses will rise as there are more people chasing them. It's all down to supply and demand.

Mouseprice.net and zoopla both have automatic valuation models so if you know the details of the house then you can see what they reckon.

So i guess its a good buy then. The house is stunning inside alot of period features like stain glass windows etc.

only problem is it backs onto a church

mr_magoo_5

You need to check the deeds, as a lot of land surrounding or previously owned by the church have covenants restricting the use of the land.
Developers usually pay,a lot usually!, to get these removed, but worth asking if your interested.

mr.broderick

toocan wrote: »

Ive narrowed down a shortlist to 2 houses (as a FTB) and they are both in good areas although at slightly different ends of the market

one is a 3 bedroom end terrace that needs renovating (asking price is 115 but will sell for 100) similar houses on the street are 'currently' on the market for 130 - 135

the other is a georgeous semi detatched house in perfect condition (asking price is 190 but might take 175 was originally 210 in jan)

now ive done some research into the streets and the houses themselves in regard to sold prices throughout the years.

the first house the terraced house hasnt been on the market for a long time but on that road in 2003 the house prices where around 80 - 90k for similar properties.

the other house the semi detached house which in 2003 the exact same one sold for 167k which suprised me.

To my untrained eye it looks like the 2nd property and the area hasnt really increased much in price in terms of % since 2003 would that mean any potential fall in value be smaller to? therefore being the better investment for minimising the impact of the current climate?

Can you please explain what past selling prices have to do with what it is worth now? I read this a lot on here and it always puzzles me.

mr.broderick

carolt wrote: »

Maybe, though someone may have overpaid in 2003 on the 2nd house - look at other houses in the street, and compare with previous/later years to see if it fits the general pattern.

Or wait another 2 months, and compare to 2002 prices?

Maybe they paid what is was worth to them? It isn't like going in to a shop and buying an umbrella as you will find out one day.

mewbie_2

toocan wrote: »

So i guess its a good buy then. The house is stunning inside alot of period features like stain glass windows etc.

only problem is it backs onto a church

Do not buy property bordering a church. They have been sucked into the property boom thing and many are now doing 'gospel' conversions, where one church is split into several new churches, stacked on top of each other. The original church lets out these new premises to other faiths, in the process becoming a BDL (Babylon Devotional Landlord).

toocan

mr.broderick wrote: »

Can you please explain what past selling prices have to do with what it is worth now? I read this a lot on here and it always puzzles me.

I was using (wrongly or rightly) as a measure of how much the property had increased in value and therefore could potentially decrease. If my situation changes in the next few years (get married etc.) i might to sell in which case i could be quiete out of pocket.

But i do appreciate what you say its the same thing EA's say you pay what you think its worth.