I am interested in buying a property but found out that the last time it sold was in 2007 and the amount it sold for is way higher than the amount it's currently listed for. Could this be a bad deal and is it possible that it could depreciate further after some years?

It sold right before the market collasped during the great recession. Lots of areas have not yet recovered to that price level.

Check other area homes to see if you see a pattern. 

@Mary Mitchell Makes sense, that could explain it. Homes in other areas close to where the property is seem to be increasing in value yearly. Thanks for your quick response

As Mary said, prices don't always go up.