HOUSE prices in Ceredigion have risen in the last three months – but remain cheaper than they were 12 months ago.
The latest House Price Index from the Principality Building Society show that the average house in Ceredigion now costs £264,496, 6.3 per cent down on this time last year – when the average price was £285,133.
The last three months have however seen house prices rise by 2.5 per cent.
Elsewhere, the average home in Gwynedd will now set you back £232,717 – a 3.4 per cent drop on this time last year, but has climbed 6.5 per cent in the last quarter.
The average home in Powys now costs £258,914, an annual drop of 10.5 per cent and remaining the same in the third quarter as it did in the second quarter.
Carmarthenshire saw a seven per cent drop annually and 3.4 per cent drop this quarter, with the average house now costing £216,711.
Pembrokeshire has experienced a quarterly drop of three per cent and an annual fall of 11.6 per cent, with the average price standing at £241,276.
Across Wales, the average price of a home has fallen to £239,378, the first time in a decade that prices have dropped year-on-year and follows three consecutive quarterly falls this year. With a quarterly drop of 1.1 per cent and an annual drop of 2.6 per cent, the new average house price is now almost £10,000 down from its peak of just over £249,000 in the fourth quarter of 2022.
Shaun Middleton, Head of Distribution at Principality Building Society, said: “The downward trend in house prices has continued into the third quarter. Economic pressures over recent months, paired with higher interest rates than we’ve become used to, means that affordability remains a problem for many buyers. This has put pressure on the housing market, which remains subdued, when compared to recent years when record average prices across Wales were seen.
“The picture across Wales shows us that more local authorities have been reporting price decreases rather than increases, translating into year-on-year falling house prices. This is a clear indication of the broad-based nature of the market’s retreat over recent months.”
There were just below 10,000 transactions in Wales in Q3, an increase on the previous two quarters of the year, but down 20% on a year ago. The slower nature of activity primarily reflects the much higher interest rates over the past year and is being experienced in much of the rest of the UK as well.
Shaun continued: “The Bank of England’s decision to leave base rate unchanged at 5.25% in September, on the back of easing inflationary pressures, has prompted better mortgage deals in recent weeks, although affordability in Wales remains stretched and the overall benefit for consumer confidence may be limited by a growing awareness that interest rates look set to remain higher for longer. This suggests that transactions levels may continue to disappoint for some time.”
Looking at price movements by property type, the different property types are currently between 1% and 4% below their respective levels a year previous. While all property types have seen pronounced slowdowns, Principality’s report shows that semi-detached properties have shown a degree of resilience – down less than 1% on the year and only 3% below their peak in March 2023.