For the first time in five quarters, house prices in Wales have risen, bringing the average house price to £236,369 in the second quarter of 2024.
This marks a 3.1% increase from the last quarter, though prices remain 5% below their peak of £249,000 in December 2022.
The second quarter of 2024 has delivered positive news for the Welsh housing market. After five quarters of falling prices, a recovery is now underway. For the first time since 2022, local authorities across Wales are reporting quarterly price increases.
Out of 22 local authorities, 15 saw price rises compared to the previous quarter, with Bridgend and Ceredigion experiencing the most significant increases, both exceeding 16%.
However, not all areas have seen improvement. Year-on-year, 11 local authorities still reported price declines, with Wrexham seeing the most substantial drop at 10%.
In terms of market activity, there were 10,200 property transactions in Wales in the second quarter of 2024. This represents a 24% increase from the first quarter and a 16% rise compared to the same period last year. This is a notable change, as transaction volumes had been declining continuously since late 2021.
A recent survey by Principality revealed that 66% of its members consider the type and size of a home to be the most important factors when buying. Detached houses, in particular, are seeing a resurgence in popularity, though flats have seen the most significant increase in transactions, rising by a third both quarterly and year-on-year. This suggests that affordability is becoming a more critical factor for buyers.
The average house price increase to £236,369 indicates a potential stabilisation of the market. The last few years have been challenging, with first-time buyers facing the toughest conditions in decades. However, looking ahead, new legislative moves by the UK Labour government and commitments from the Welsh Government to build new homes are expected to support the market.
The Welsh Government aims to deliver 20,000 new low-carbon homes for rent within the social sector during the current term. These efforts, combined with better economic conditions and growing buyer interest, suggest that the second quarter of 2024 could mark a turning point for the Welsh housing market, with expectations of rising house prices and increased transaction volumes in the future.
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Source: Property Wire
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