Peak Pricing

[stepping_up_IHB]

How do you determine what and when the peak price of a property was? Also, were the appraisals higher for refi's than they were for purchases? It seems like some of the refi's recorded prices that are insanely unbelievable, like 15% more than the crazy prices of late '05 and through '06.

 

[Bubblegum_IHB]

In general, I'm guessing mid-2006. IR probably has better viewpoint. You may not be able to find "peak" valuation on a specific property, but comps sold in that timeframe were used for re-fi's and appraisals. Some valuations might be part of Ponzi schemes and fraud, but in general, I'd use mid 06 as a yardstick.

 

[freedomCM_IHB]

yes, i don't know a way to do it for an individual property.



but you can estimate, by taking the case-schiller spreadsheet and calculating from previous price to peak ratio



for instance, if it sold in jan2003 (CS=144 for LA) for $300k, the peak CS was 274 july to oct 2006, so



274/144 * $300k = $571k theoretical peak price.