House prices in Wales were flat throughout 2024, but the market could be set for a comeback this year, Principality Building Society has predicted.
In the fourth quarter of 2024 transactions rose to their highest level in three years, while steadily lower mortgage rates are likely to fuel consumer demand in the months ahead.
The average price of a home sold in Wales increased to £233,200 in the final quarter of 2024.
Iain Mansfield, chief financial officer at Principality Building Society, said: “The housing market in Wales has demonstrated resilience against a challenging environment throughout 2024, with Principality’s House Price Index showing clear signs of renewed confidence.
“The steady growth in transactions highlights strong demand for housing underpinned by the ongoing challenge of limited supply, which continues to shape the market landscape.”
He added: “A more stable housing market is welcome news for buyers and speaks to the strong demand for housing, driven by buyers looking to enter or move within the market, despite the challenging landscape of the last few years.”
On a regional basis there’s a mixed picture in terms of Welsh house price growth.
Buyers in Carmarthenshire and the Isle of Anglesey could expect to pay more, as these areas saw rises of 8% and 7.8% respectively in the final quarter of the year.
Other areas, including Merthyr Tydfil saw prices fall in Q4, dropping 17.9% in the last three months of the year. Meanwhile the year-on-year trend for the same region suggests just over a 5% drop.