New figures have revealed that house prices in Wales have fallen for the fifth consecutive quarter. The Wales House Price Index for January to March 2024, from the Principality Building Society, showed that the average house price at the end of March 2024 was £229,263 – a decline of 6.5% from the previous year. The largest fall was in the Vale of Glamorgan where prices fell by 15.7%. Five local authority areas “Flintshire, Gwynedd, Caerphilly and Swansea” saw price rises compared to last year. Real estate transactions have also declined by 15%. Despite being £20,000 cheaper on average than last year, current prices remain £55,746 higher than those five years ago.
Detached properties experienced the weakest sales performance in the last quarter, indicating a drop in demand for larger-sized properties. Affordability, economic pressures, and the high cost of mortgages are causing problems for many buyers, putting pressure on the housing market in Wales. Shaun Middleton, head of distribution at Principality Building Society, said that the latest news suggested that the housing market in Wales might soon see more positive signs because inflation continues to fall, albeit slowly, while low mortgage deals make the housing market more affordable.
Furthermore, economic analysts predict that the Bank of England base rate has reached its peak of 5.25 and will fall this year, making better mortgages deals available, “easing the affordability of housing,” Middleton said. Carmarthenshire, Denbighshire, Merthyr Tydfil, Powys, and the Vale of Glamorgan saw double digit price falls, with the Vale of Glamorgan experienced the largest decline of 15.7%. Only 18 out of the 22 local authorities in Wales saw a decline in housing prices compared to the same period last year.
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