What is Happening in the Housing Market in Wales?

If you’re thinking about a house move in the popular North Wales areas of Llangefni, Bangor, Caergybi, Gwynedd neu Ynys Mon, you’re probably wondering what is happening with the housing market in Wales right now.

First-time buyers might well be encouraged by reports that prices have fallen in many regions, offering your more for your money. And if you’re a second-stepper, stable pricing along with high levels of supply mean that while you may need to be realistic when pricing your current home, you’ll get a better deal when purchasing a larger property.

Aside from house prices, mortgage rates and availability of homes are big considerations, as is the impact of the general election on 4 July.

Reports about the state of the market are conflicting depending on which data source you use. However, we have analysed the 2024 figures from leading lenders and property portals to consider current trends around the state of the housing market in Wales.

Wales housing market overview

It’s important to note that the housing market is in a constant state of flux, with competing sources providing slightly different figures for the Welsh property market. Looking below, you’ll see some of the statistics from some of the largest lenders to help you gain an approximate overview of the current situation.

Welsh building society the Principality produces a house price index concentrating on the market in Wales. According to its most recent figures, covering the period January to March 2024, average prices in Wales fell by 2.1% compared to the previous quarter and 6.5% annually.

The average property in Wales costs just under £230,000 according to the building society. This is around £20,000 cheaper than at the height of the market in 2022. However, average prices are still 23% higher than they were before the pandemic.

Elsewhere, leading UK lender the Nationwide, says house prices in Wales rose by 1.3% in the year to March 2024 and by 1.2% in the first three months of the 2024 as mortgage rates eased compared to the previous summer.

More recent figures from Halifax put average prices in Wales as growing but at a slower pace. Wales saw its rate of growth slide from 1.1% in April to 0.7% in May.

In terms of housing supply, one of the property portals figures for Wales reveal a lower proportion of sales agreed in relation to properties on the market so far this year. The Principality also recorded the number of houses being sold as down to under 8,400 transactions in the first quarter of 2024, an annual fall of 15%.

What is the market like in North Wales?

Gwynedd in North Wales was one of the few areas to see a rise in prices in the Principality data. Gwynedd saw an annual price rise of 2.2% and nearby Flintshire recorded the much larger increase of 12% over the past year.

According to property website Rightmove, the average cost of a house on the Ynys Môn was just over £250,000 over the past year, so higher than the Wales average, though flats and terraced properties are available for much less.

What are the main factors influencing the market?

Affordability is seen as the main factor influencing the market right now. The Bank of England base rate has remained static at 5.25% since August 2023 meaning that while mortgage rates are lower than last summer, they are still much higher than before the mini budget of September 2022.

While inflation has fallen and other costs such as energy prices have stabilised, people are still feeling the squeeze and exercising caution about such a major expense as a house move.

The decision to call an election, could also be influencing house prices as people wait and see. However, many commentators believe that, with little difference between the main parties on many issues and few housing pledges, it won’t have a major impact.

What types of properties are in demand?

The Principality study found the highest demand for terraced properties across Wales with a fall in demand for the detached homes so coveted during the pandemic. Fewer flats are sold in Wales than other types of property, however, the data showed an increase in demand for this type of home over the past year.

Where is the market heading in the long term?

Many commentators are hoping for a fall in the Bank of England base rate after the election, leading to the cheaper mortgage deals. Together with a continued fall in inflation, this would improve affordability bringing a boost to the market in Wales.

Supply in the Welsh market is currently high, with fewer transactions. However, people may be waiting to see what happens with the election, mortgage rates and house prices, before committing to a move. This means there is likely to be pent up demand especially among first-time buyers keen to get a foot on the housing ladder as rents increase.

And Finally

Ultimately, whatever happens to the housing market, the right time to move house is down to your personal circumstances, whether that’s a job, school or need for more space. If now is the right time for you to move in North Wales – whether in Porthaethwy, Llanberis, Rhosneigr, Caernarfon, Biwmares or beyond – get in touch. We’d love to talk your though our portfolio of properties and give you a no-obligation appraisal of your current home.