Top of the market?

HH62

Can someone tell me when the top of the housing market was? I realise there'll be some debate about this, but I'm looking for approximately. I'm thinking it may have been Q2 and 3 in 2007 ?

besonders1

I think it varies by region as well, London reached the peak in 2007 whereas further up north the crash was unheard of as the market was still booming in early 2008.

Robert_Sterling_3

HH62 wrote: »

Can someone tell me when the top of the housing market was? I realise there'll be some debate about this, but I'm looking for approximately. I'm thinking it may have been Q2 and 3 in 2007 ?

Q2 of 2007 in my case

HH62

Thanks. I'm asking for a friend who bought an apartment in city centre Manchester in Nov 2007..She's suffering from Major Head In The Sand syndrome as far as her negative equity goes, IMO.

Rick62

I would say it was the day before Northern Rock crashed!

mark5

Good point Rick62, everything went down hill after Northern Rock!

beingjdc

HH62 wrote: »

bought an apartment in city centre Manchester in Nov 2007

It is likely to be worth 30% less than she paid. 50% if she bought it new-build.

hethmar

Generally August 2007 is accepted as the peak.

You could get a vague idea of the value by using the Nationwide calculator. Of course depends on how much over valued the flat was when she bought it, if it were a new build.

http://www.nationwide.co.uk/hpi/calculator.asp

HH62

beingjdc wrote: »

It is likely to be worth 30% less than she paid. 50% if she bought it new-build.

It was a new-build. :eek: And the worst of it is, at least three of us advised her not to pay what the developer was asking for...

This thread is making me think of the words 'don't shoot the messenger' .
She's struggling with the mortgage and has been talking of selling it - but seems to think it will still be worth about £160k. I'll tell her again, what I told her yesterday, get 3 EA's in to value and tell them she wants realistic priced to sell valuations.

hethmar

Did she pay £160k? She must know that Manchester city centre in particular has been very badly hit on new build flats.

Have you checked out the NW calculator.

Thing is, why do you need to say anything to her now? Youve told her your opinion, let her get an estate agent in to value the place. Theres nothing you can do to make it worth more for her.

HH62

hethmar wrote: »

Did she pay £160k? She must know that Manchester city centre in particular has been very badly hit on new build flats.

Have you checked out the NW calculator.

Thing is, why do you need to say anything to her now? Youve told her your opinion, let her get an estate agent in to value the place. Theres nothing you can do to make it worth more for her.

She paid 180k . I've checked out the calculator but not sure I used it the right way - I put in the price she bought it at in Q4 of 2007 then just asked for value in Dec 2008. It gave a value of 144k.
And the reason I have to say anything is that actually I DONT have to say anything more, but she just asked my opinion last night, and I said I'd try to find out but told her I'm sure it's lost 'a bit'. I must admit, the banter round the table last night was that most of us thought it had probably lost about 20k. But then when I thought about I realised she'd bought it right near the top of the market so the loss is probably much more.
Looks like I may be having a lodger soon. :rolleyes: