House prices in Wales fall by 6.5% in a year
House prices in Wales have fallen for the fifth quarter in a row, according to new figures.
Principality Building Society said the average house price at the end of March 2024 was £229,263, down by 6.5% from the year before.
The Vale of Glamorgan saw the biggest drop, with prices down by 15.7%.
Flintshire, Gwynedd, Caerphilly and Swansea were the only council areas to see rises compared with last year.
The number of houses being sold in Wales also dropped again, with under 8,400 transactions taking place in the first quarter of 2024, an annual fall of 15%.
The figures have been released from Principality Building Society's Wales House Price Index for January to March 2024, which demonstrates the rise and fall in house prices in each of the 22 local authorities in Wales.
House prices in Wales have fallen 2.1% compared with the last quarter, and 6.5% compared with last year.
Prices have fallen by £20,000 on average, but they remain £55,746 higher than five years ago.
Across Wales' 22 local authorities, 18 have seen a drop compared with last year.
Carmarthenshire, Denbighshire, Merthyr Tydfil, Powys, and the Vale of Glamorgan saw double digit price falls, while the Vale of Glamorgan saw the largest fall of 15.7%.
Flintshire, Gwynedd, Caerphilly and Swansea saw increases - Flintshire the largest at 12%.
'More positive signs'
The number of house sales has also dropped for another quarter, meaning transactions have declined continuously year-on-year since the end of 2021.
According to Principality, detached properties saw the weakest sales performance in the last quarter, which it said demonstrated a fall in demand for larger properties.
Shaun Middleton, head of distribution at Principality Building Society, said: “Economic pressures, coupled with the higher cost of mortgages has meant affordability continues to be a problem for many buyers, placing undoubtable pressure on the housing market in Wales.
“Despite what has marked the most challenging housing market conditions since the Global Financial Crisis in 2008, the latest news that inflation continues to fall - although slower than anticipated - suggests that the housing market in Wales could soon see more positive signs.
“Many economic analysts have also predicted that the Bank of England base rate has peaked at 5.25 and will fall this year. This assumption is prompting better mortgage deals and easing the affordability of housing.”
