how much did property prices go down to in the 90s?

Deals_2

how much do we think this time? just wondering if we should port over or not at the moment . thanks

PasturesNew

House price data by post town is probably what you want:
http://www.hbosplc.com/economy/HistoricalDataSpreadsheet.asp

All figures, in an Excel spreadsheet, all towns. Showing average house prices per year since about 1988. So you can see for your area.

m00m00

it would be a huge mistake to read to much into past figures though.


things really are 'different' this time.

SingleSue

As an example...

We thought we had purchased at the bottom of the market where the people we bought the property from had already lost £18k in just less than 2 years . They paid £57k we bought for £39k.

Our house was finally sold (via a repo) for market value (yes we were lucky that it did acheive what other houses of the same were getting) for £26k, 4 years later.

Deals_2

so are you saying that effectively you lost out?

SingleSue wrote: »

As an example...

We thought we had purchased at the bottom of the market where the people we bought the property from had already lost £18k in just less than 2 years . They paid £57k we bought for £39k.

Our house was finally sold (via a repo) for market value (yes we were lucky that it did acheive what other houses of the same were getting) for £26k, 4 years later.

Deals_2

truth!!!thanks in advance

PasturesNew wrote: »

House price data by post town is probably what you want:
http://www.hbosplc.com/economy/HistoricalDataSpreadsheet.asp

All figures, in an Excel spreadsheet, all towns. Showing average house prices per year since about 1988. So you can see for your area.

SingleSue

Deals wrote: »

so are you saying that effectively you lost out?

Not just effectively but in reality.......we had huge negative equity and after a long battle, lost our house and had a huge bill at the end to cover the difference between the mortgage amount, the sale price after repo and the charges and interest incurred in between .

Long story but one I have posted on here in the past.

Or the other way of looking at it is at the height the house sold for £57k but coming to the bottom of the recession it sold for £26k, a loss in value of £31k or just over 54%.

Edit - It was a new build at the 57k amount.

PasturesNew

I bought a SO property just north of Cambridge on a council road. My 50% share in 1990/91 when I bought it was £26,000

It sat in negative equity until I sold it in 1997 (although I didn't really know this as information back then wasn't as available as it is these days, so if you weren't selling you probably weren't aware).

In 1997 I had to write a cheque out for 5% of my original buying price, so £1300, to be able to sell it back to the Council.

The house I was in at the time was pretty unique. There weren't the SO schemes back then, it was a sort of early trial. Just two houses out of six were SO. Looking through house prices I therefore can't find a comparable property for sale these days, but I estimate that if I were still there now it would be "worth" about £110k (£55k for the SO part). So from 1990 to 2008 it still hasn't gone up much!

SingleSue

Our one finally climbed back to the price we paid for it in near 2000 (around that time anyway, stopped looking in 1998) .

Those same houses now had been going for 100k+ until this recent correction/crash/stagnation (delete as appropriate) but have taken some recent hits.

Alan_M_2

I bought in 89, a two bed terrace which had dropped from £95,000 down to £72,000, we thought we were getting a bargain.

By the mid 90's it was "worth" less than £50,000 at which point the mortgage payments had exceeded my gross salary (15% interest rates non fixed rate mortgage) and I could no longer afford the payments.

It was sold in Feb 2001 for £118,000

Having had a look on ourproperty.co.uk houses in that street peaked at £209,250 with a sale in May 2007

jamescredmond

my experience:

my pad valued at £62k at the top (late 80's)

down to £37k by jan '94

a 40%ish drop.

don't anyone say that this couldn't happen again.