When will we see 2007 prices again?

geneer

HAMISH_MCTAVISH wrote: »

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

Hamish forgot to mention the "temporarily" exceeded the former 2007 peak prices part.

Perhaps the 15.5% fall reported by the ROS for Aberdeen city in the month up to 8th January is of relevance to the "new peaks" he discussed.

MarianKendal

From what I've read recently about house prices we're about on par with 2005 at the moment so I'm going to have a stab in the dark and say by 2013 we'll be back where we were in 2007. Pending any more economic disasters. :S

An article I read based on the Halifax's latest figures also backs up what people have been saying here about the North/South divide when it comes to house prices - basically it said that in 2000 houses in the North were worth 80% less than in the south, the gap then narrowed over the past 10 years but is looking like it is beginning to widen again.

You can read the article I read here if you want to: http://www.propertymentor.co.uk/property-news-675.php I'd be interested to know if people have witnessed similar trends with their own properties - I gave up trying to sell mine in 2009 - too depressing.

doire_2

MarianKendal wrote: »

From what I've read recently about house prices we're about on par with 2005 at the moment so I'm going to have a stab in the dark and say by 2013 we'll be back where we were in 2007. Pending any more economic disasters. :S

An article I read based on the Halifax's latest figures also backs up what people have been saying here about the North/South divide when it comes to house prices - basically it said that in 2000 houses in the North were worth 80% less than in the south, the gap then narrowed over the past 10 years but is looking like it is beginning to widen again.

You can read the article I read here if you want to: http://www.propertymentor.co.uk/property-news-675.php I'd be interested to know if people have witnessed similar trends with their own properties - I gave up trying to sell mine in 2009 - too depressing.

Did you lower the price for todays market and not what you think it was worth during the bubble years?

MarianKendal

I lowered the asking price by £10k (based on what I knew another property in the same terrace sold for the year before) and the highest offer I received was £16k below that!! I will admit that the property wasn't in the best condition, but £26k is a BIG drop (in my opinion). Since then I've just given it a bit of a spruce up and have been renting to my niece at "family rates" (rather than have it empty) At least until house prices pick up again. (Fingers crossed :S)

myhouse_2

Rather than just giving a personal opinion on when prices will return to 2007 levels, I'd say that 2007 prices were caused by exceptionally loose lending policies. So it's better to ask "when will exceptionally loose lending policies return?). And the answer to that is probably 15 years from now when people have forgotten the last boom and bust. (Prices may go above 2007 levels at some point before then, but not when adjusted for inflation).

myhouse_2

MarianKendal wrote: »

I lowered the asking price by £10k (based on what I knew another property in the same terrace sold for the year before) and the highest offer I received was £16k below that!! I will admit that the property wasn't in the best condition, but £26k is a BIG drop (in my opinion).

26k is a big drop! The problem is that it was also a big rise when prices increased during the bubble, and that's why people can't afford current prices anymore.

myhouse_2

Jowo wrote: »

Yeah, you can buy a studio flat in the West End of London for 400k or a similar studio flat in Rotherham for 50k.

I know where I would prefer to live (you can't put a price on living in a buzzy affluent part of a vibrant capital city stuffed full of amenities compared to a depressed former mining village).

I bet I know which property would sell more quickly.

Depends what you like I suppose. Personally I'd prefer to live in a huge 200k Rotherham house than a studio flat in London for 400k.