House prices in Wales have fallen to their lowest levels in nearly two years.

The average house price in Wales fell to £229,263 in the first quarter of 2024, making this the fifth consecutive quarter that prices have fallen.

House prices are now almost £20,000 below the peak recorded at the back end of 2022, according to figures from Principality Building Society’s Wales House Price Index.

The Principality Index for the first quarter (Q1) of 2024 shows the rise and fall in house prices in each of the 22 local authorities in Wales.

Principality’s report shows the average house price in Wales has fallen by 2.1% since last quarter and is now down 6.5% when compared to the same period the previous year.

Changes to average house prices in counties across Wales

The biggest change in average house prices across Q1 of 2024 for Wales was recorded in the Vale of Glamorgan.

The south Wales county saw house prices, on average, fall by 11.8% in Q1 meaning it has now seen an average annual drop of 15.7%.

The next biggest change was recorded in Anglesey, where average house prices fell by 11.2% in the first quarter of 2024.

The biggest increases (for Q1) were recorded in Blaenau Gwent, up 8.6%, and Flintshire, up 8.5%.

All the average house price changes in each county from Q1 in 2024 can be found below:

  • Anglesey - average house price: £250,303 (annual change: -6.5% / quarterly change: -11.2%)
  • Blaenau Gwent - £149,012 (-1.8% / +8.6%)
  • Bridgend - £228,346 (-0.8% / -1.6%)
  • Caerphilly - £198,979 (+1.3% / -0.7%)
  • Cardiff - £283,960 (-5.6% / -7.9%)
  • Carmarthenshire - £202,387 (-10.0% / -0.9%)
  • Ceredigion - £260,629 (-2.5% / -5.8%)
  • Conwy - £231,704 (-4.4% / +1.5%)
  • Denbighshire - £197,581 (-13.8% / -5.1%)
  • Flintshire - £252,092 (+12.4% / +8.5%)
  • Gwynedd - £234,111 (+2.2% / -8.8%)
  • Merthyr Tydfil - £154,263 (-12.4% / -1.6%)
  • Monmouthshire - £339,259 (-5.0% / +0.6%)
  • Neath Port Talbot - £160,450 (-6.8% / -4.1%)
  • Newport - £239,215 (-8.1% / -1.5%)
  • Pembrokeshire - £247,130 (-3.0% / -4.7%)
  • Powys - £244,875 (-10.8% / -2.5%)
  • Rhondda Cynon Taf - £171,376 (-1.2% / +2.7%)
  • Swansea - £233,374 (+1.9% / +6.8%)
  • Torfaen - £210,130 (-8.5% / +0.9%)
  • Vale of Glamorgan - £287,418 (-15.7% / -11.8%)
  • Wrexham - £210,917 (-7.5% / -1.2%)

House prices in Wales may have reached their lowest point

Head of Distribution at Principality Building Society, Shaun Middleton, said: "The downward trend of house prices has continued for the fifth consecutive quarter in Wales.

"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.

“The picture across Wales shows that overwhelmingly local authorities have been reporting price decreases, rather than increases, translating into another year-on-year falling of house prices.”

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There were just under 8,400 transactions in Wales in the first quarter of 2024, 15% fewer than the last quarter of 2023.

This downward trend is reflected across the rest of the UK, with wider economic pressures facing the housing market acting as a major drag on demand and activity levels during the quarter.

In Wales, quarterly sales transactions have declined continuously year-on-year since late 2021, according to Principality.

But Mr Middleton said house prices have now reached their lowest point and next quarter they may begin to rise again.

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He said: "Consumer confidence is also improving, along with wage growth, as pent-up demand for housing builds.

"Looking ahead, there may well be another fiscal event from the UK Government, but at the very least a General Election on the horizon, and a newly formed Welsh Government in Wales with a mandate to tackle affordable housing.

"Together with our insight, this suggests that this quarter may well represent the low point for house prices in Wales, which we expect to rise as affordability increases.”