The average house price in Wales has fallen by almost 7% from its peak of £249,000 achieved at the end of 2022, shows latest research from the Principality Building Society.
The Cardiff headquartered mutual’s latest quarterly Wales house price index also shows that in the third quarter (Q3) of this year the average price dropped by 2.9% on the same period in 2023 to £232,400. When compared to the previous quarter (Q2), when prices rose 3.1%, the average house price was down 1.7%.
Despite the slight downward trend in prices in Q3, there were around 11,200 transactions in Wales - 18% more than in Q2 and 11% up on the same period a year ago.
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Principality said the increase supports the recovery in property sales which began in the Q2 of this year, following a period of steady decline. For two years, cost-of-living pressures and higher interest rates significantly reduced demand and slowed activity across most of the Ƶ, including Wales.
A recent survey conducted by the mutual revealed that almost half (48%) of its member saying the Bank of England base rate level has impacted their ability to save. The recent base rate reduction to 5%, and economists’ predictions that this may fall further are encouraging signs of better market conditions. The mutual added that this, combined with a resurgence in sales of detached, semi-detached and terraced houses, suggests affordability in Wales is on the rise.
Although the last est house price index shows a majority of local authorities reported price drops in Q3, some of the 22 local authorities did see rises with Merthyr up 9.1% following by Wrexham, up 5.3%.
Shaun Middleton, head of distribution at Principality Building Society, said:
“The third quarter of 2024 signifies a slow and steady recuperation of the housing market, despite house prices adjusting slightly down in the third quarter, following an uptick in the second.
“Across Wales, developments at local authority level are mixed, reporting no clear direction with house price trends. Nevertheless, there is a clear upward trend in sales, demonstrating that market activity is looking positive overall.”
He added: “Accounting for seasonal impacts such as the general election and time of year, the data supports a gradual market upturn, with Wales showing glimmers of steady improvement
“While house prices are still adjusting downward, sales activity is gaining momentum, suggesting that a slow but steady recovery might be on the horizon. However, the pace and nature of the recovery varies by region and property type, so potential buyers should stay informed about local conditions.”
