Can anyone remember what the housing market was like in 2006?!

[Cydonia]

Sorry, bit of a random one! I’m going to view a house at the weekend, it’s on the market at a guide price of £270 - 290,000. Been on since June, I think they have changed estate agents recently and dropped the price from £285,000. When I looked on previous nearby sales on Rightmove it came up, and had sold for £266,000 in 2006.
I know I’m jumping the gun a bit here as I haven’t even viewed it yet, but something about that doesn’t seem right? Wouldn’t you expect it to have gone up more in 14 years, leading me to think what’s wrong with it?! Or were prices through the roof in 2006?
Just wondered what other people more experienced in these matters would make of this. I don’t know if it’s the owner or the agent showing me round, but either way I’m not sure I can really ask them!

Depends on the area, 2008 there was a slump and the banking crash took a while for prices to recover in some areas.

2006 was still through the roof here. 2007/09 it crashed

I think it might have been around peak time there. Also, the area might have become cheaper and not kept up with inflation. Or they might have bought it all done up by it’s dated by now so relatively cheaper.

I think that looks very odd. I know the whole country hasn't seen insane price rises like London and the South East but 2006 is 14 years ago!

2006 to early 2008 was peak prices. It’s still an increase.

What do you know about the property? Is it a new build? How does it compare with what else is on the market now?

I bought a previous property in 2006. I sold it 10 years later £50k more than I bought it. But cosmetically it was in such better state. New kitchen and bathroom not long before I sold.
This was west midlands. That was 30% increase.

Hi. There was a global financial crash in 2008 with the collapse of several banks due to high risk lending policies. In the UK the government had to bail out RBS, Lloyds and Barclays to prevent them collapsing. . House prices plummeted from a 2006 /2007 peak. Where I am they have only reached pre 2008 prices in last few years. So makes perfect sense the price of this house. Also don't be afraid to ask the estate agent as a completely valid question. Good luck with your viewing.

In my areas of the North East prices were sky high in 2006, then the financial crisis hit and some places still haven't recovered. It doesn't seem unusual to me.

2006/7 was the top of the market, just before the financial crisis so that's not impossible. Have a look at what other houses in the area have done. There's a lot of information out there.

Funny you mention this. I've been pondering a situation with two similar, desirable, early 20thC houses, in the same (desirable) postcode. One has just come on at the 2006 asking price, another has an asking price that has increased by over 30% since 2006.

The market (here) was very very buoyant in 2006. But the fortunes of these two streets have diverged. One has been taken over by student landlords.

We bought our house in 2006 and it's valued at 50% more now. This is in the South East.

I think it’s pretty reasonably priced compared to others I have seen. It’s an old house, lots of beams and character, perhaps this and the slightly quirky layout might make it a bit less desirable? I think it’s lovely, but I think with current trends it might be considered dark and dated. Perhaps the location might not be the best either, it is roadside but there’s heaps of private space behind and to the rear.
The house next door is for sale too, though it’s not the same style, I’ll check the price of that one.

House prices rocketed in 2005-6. Friends of ours made bought a two bed semi for 80K and sold it for £180K after a year with only a basic renovation: budget kitchen and bathroom and decorated the rest. We bought a small 3 bed for £125K and sold it for £154K without doing anything to it. House prices haven’t gone up by much at all since then though. Worth checking zoopla etc for prices.

Agree with PP prices here NW, peaked late 2007 and in my area only recovered to break even point last year.

Since then there’s been a local spike since last Christmas of almost 30%, but other places nearby are still around break even point from 06/07.

It was booming in London, and very easy to get a mortgage, we bought that year and then had to wait until 2014 to re-sell as it lost so much value as the 2008 crash.

Character op is usually more desirable, but road side would be an issue if it’s a busy road, also if it needs work ie not been updated in the last 14 years and wasn’t updated then.

It’s not selling for a reason and it’s valued at that price for a reason.

Thanks for the info by the way, I couldn’t remember when the peak was, and looking at prices on my own street just confused me more! We are North West, and the house is in the same town I live in at the moment. Traditionally house prices in our town are lower than a nearby, more tourist friendly town and probably a lot below the national average!

I bought a flat in spring 2007 and it was a rush to get it and prices were really high. Within a year it had gone down in price. I bought it for 260k in 2007 and not sure what it went down to but now this year it is worth 400k. This is zone 3 London.

In 2006 I was in a flat where some were selling for around £80,000. I had bought it in 2000 for £24,000. In 2008 the market crashed. In 2009 I sold my flat for £65,000. You can buy them currently for around £55,000.

Bluntness, that’s what I’m worried about. It looks fine in the photos, but you can’t always tell from photos. We wouldn’t be able to afford to do much to it initially.

Blimey, the one next door has been on the market since May 2019! It’s bigger, more expensive and more dated, but makes me wonder?!

People were overpaying in 2006/7.
In 2007 we offered on a property valued at £200k and missed out as winning offer was £360k (Scotland). I doubt it would be worth that now.

Go see it, by cynical/careful. But I’d not be put off by the lack of price increase. But there could well be plenty other issues!

That’s completely plausible. 2006/7 was the top of the market. 100% mortgages were not unusual and Northern Rock was offering a 125% mortgage. There are quite a few places in the UK where prices have only fairly recently recovered to pre 2008 levels and there are some areas which have not managed this at all.

2006 was the top of the market and back when lending was very easy. Also if it was new then it may have carried a premium as well.

Thanks everyone. I’ve only ever really seen house prices go up, the thought of negative equity seemed like something only people with big houses down south struggled with! I’ve had another look at similar houses in that price bracket, and none of them seem to be selling quickly either. So I don’t think it’s necessarily that house or the location. There’s quite a lot of new builds going up in the nearest two towns which are selling like hot cakes despite being more expensive than this one, so maybe people are wanting those instead.
A good look round is what is needed!