The average house price in Wales had hit a new high of £215,810 shows latest data from Principality Building Society.
According to its Wales House Price Index the rate for the second quarter of this year (April to June) is the strongest rate of growth reported over the past year.
However, despite annual house price inflation of 12.5%, there is some sign that the strong pace of increases seen around the turn of the year has begun to abate, with the quarterly rate of increase now down to 1.4%.
The mutual said this is likely to be a result of the Land Transaction Tax (LTT) holiday coming to an end in June and could indicate price growth slowing in the second half of 2021.
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It has estimated 13,400 transactions in Q2, nearly treble the Covid-depressed level of Q2 of 2020 (4,800 sales), but also significantly higher than pre-pandemic Q2 2019 (11,000 sales).
All 22 local authorities in Wales reported rises on an annual basis in the quarter, repeating the performance of Q1. Prices in eight authorities – Blaenau Gwent (£128,441), Bridgend (£214,081), Conwy (£222,944), Merthyr Tydfil (£159,101), Neath Port Talbot (£160,324), Rhondda Cynon Taf (£150,726), Vale of Glamorgan (£330,396) and Torfaen (£198,476) – reached new peaks.
Nine local authorities reported annual price increases of more than 15%, with Blaenau Gwent (19.6%), Bridgend (19.4%), Carmarthenshire (19.9%) and Conwy (19.7%) all reporting an annual rise of almost 20%.
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Many of these local authorities also reported strong quarterly gains, in particular Bridgend (11%) and Merthyr Tydfil (15%). A small majority of local authorities (12 of the 22) reported minor quarterly decreases, which may be a further sign that a gentler period of price inflation lies ahead.
Newport, Swansea and Wrexham - along with Powys, all reported quarterly prices around 5% lower.
Tom Denman, chief financial Officer at Principality Building Society, said: “The scale and strength of the housing market in Wales to date does suggest that this momentum will continue into the final quarters of the year. Clearly, the stimulus effect of the Land Transaction Tax holiday will have disappeared by then, and because some purchases were brought forward to capture that benefit, there will be an inevitable dip in activity.
“Alongside this, the furlough scheme ends in September, thus further revealing the underlying state of the economy and employment. Various forecasts suggest that Wales -along with other parts of the 海角视频- will see house price inflation down to just under 5% in 2022 and onwards.
" Much will depend on the course of interest rates and the economy, but the mortgage market remains very competitive with rates having fallen in recent months after slightly increasing at the height of the pandemic.”