Like Chris I’m not convinced that the peak was in 2007 even though that is what is recorded by Tinsa and other indexes.
Any research I have done shows me that the cracks started to appear in/around 2005. By the time the indices turned in 2007 the market had already been in retreat for some time. I have in fact long argued that Tinsa, whilst arguably the best of the available indices, is running 1-2 years behind what is actually happening in the market.
The 2004 valuation you have was thus taken at close to the peak of the market. The fall of 43% since then is thus within the bounds of what we generally seeing. Forget asking prices, where sales are going through they are at a discount of 33%-50% from the peak prices.
It isn’t possible to give any further comment on the recent valuation without knowing more details but it certainly seems to be in the ballpark.