When will we see 2007 prices again?

fannyanna

I know the housing market isn't great and prices have dropped and from what I understand are expected to drop further this year.

But to try and put things into perspective in a simplistic way what is the general consensus on when prices will reach the highs of mid 2007?

Thrugelmir

With the general state of finances, employment, lack of available credit etc. If I knew the answer I could become a very wealthy person.......

fannyanna

It's a how long is a piece of string question isn't it :-)

Sibley

I expect you will see houses back to full strengh in most areas by the end of this year. At the moment sellers may except 5-10% below asking price if they need to sell. Most sellers are just waiting until the market improves before putting their house up for sale.

Cleaver

Obviously it depends on the property to a large extent (and whether we're talking real or inflation-adjusted prices). My opinion is that some of the new build flats that were selling for £250k+ in places such as Birmingham, Manchester and Leeds won't see those types of prices again for quite a few decades. On the other hand, I'm sure that there are many quality houses in sought after areas that are still selling at 2007 prices and probably a bit more.

But if we're talking an average, niceish, 3-bed semi in a niceish averageish area of a niceish average town or city that sold for £180,000 at the very peak (and that was a street high) and then dropped 20%ish then I personally think it could be 2018 ish before those type of prices will be the 'norm' again (and I'm talking real prices - i.e. that same house sells for £180,000 again in 2018). I'm sure there are anomalies here and there, but I think that we'll see a weird old housing market for the next decade where few people sell, few people buy and house prices don't really go anywhere. It will no longer be getting your house valued that's the issue, it'll be finding someone to buy it. Just my opinion of course.

HAMISH_MCTAVISH

fannyanna wrote: »

what is the general consensus on when prices will reach the highs of mid 2007?

In some areas prices have already exceeded the former 2007 peak prices.

In some others, it may take a decade.

Very much depends on the locality, but as a national average I'd guess another three years or so in nominal terms, more like five or six adjusted for inflation.

Cleaver

philc_31 wrote: »

Here in Exeter a new 4 bed detached costs £340k, seen the same identical house in Dunfermline for £175k and that one is a resale with carpets and curtains. Some areas are more overpriced than others.

Just because a house is £340k in Exeter and another 'identical' house is £175k in Dunfermline it doesn't necessarily mean that one is overpriced. In fact, it could be that the one in Dunfermline is more overpriced than the one in Exeter.

HAMISH_MCTAVISH

Cleaver wrote: »

Just because a house is £340k in Exeter and another 'identical' house is £175k in Dunfermline it doesn't necessarily mean that one is overpriced. In fact, it could be that the one in Dunfermline is more overpriced than the one in Exeter.

Indeed.

If the houses are truly identical, then their value is the same.

The value of the land they sit on however, can vary considerably....

Cleaver

master_of_ghouls wrote: »

2113 after growth on the back of the Olympics.

I bet the olympics in the year of 2113 will be amazing. Robots doing long jump and the cycle races will be around the rings of saturn.

quantic

As soon as mortgages become more readily available, or when people adjust to saving a deposit. Our estate had a few houses the same for sale when buying ours, they all had many many offers on each of them, (some 40+ over 6 months). Ours had sold (subject to contract) 6 different times, but nobody could secure a mortgage. Its not that people don't want to buy, its that they cant borrow, especially first time buyers.

I know 4 people who are sat on roughly 80% of what they need for a deposit, must be other people with friends in a similar position. (Most of my friends started saving after the crash, when the 100%+ mortgages went out the window.

DervProf

Sibley wrote: »

I expect you will see houses back to full strengh in most areas by the end of this year. At the moment sellers may except 5-10% below asking price if they need to sell. Most sellers are just waiting until the market improves before putting their house up for sale.

You seem to know a lot about sellers. Have you been talking to your local friendly estate agent again, or are you just hoping that sellers are just waiting ?