The average sold price for homes in Wales dropped by 2.9% in the third quarter of 2024, with purchases happening for a typical £232,400.
However, there were around 11,200 transactions in Wales in the third quarter of 2024, 18% more than in the second quarter.
As a result, Principality Building Society, which conducted the research, suggested that the market is making a recovery.
Shaun Middleton, head of distribution at Principality, said: “The third quarter of 2024 signifies a slow and steady recuperation of the housing market, despite house prices adjusting slightly down in the third quarter, following an uptick in the second.
“Across Wales, developments at local authority level are mixed, reporting no clear direction with house price trends. Nevertheless, there is a clear upward trend in sales, demonstrating that market activity is looking positive overall.”
Almost half (48%) of Principality members respondents say that the Bank of England base rate level has helped them save.
The recent base rate reduction to 5%, and economists’ predictions that this may fall further, are encouraging signs of better market conditions.
The Wales House Price Index shows the majority of local authorities have reported price drops for this quarter, though there are also pockets of regional increases.
Merthyr Tydfil appears to have turned a corner with a 9.1% price hike since the second quarter, following an earlier period of significant annual falls, followed by Wrexham, with a 5.3% increase in prices.
Middleton added: “Accounting for seasonal impacts such as the general election and time of year, the data supports a gradual market upturn, with Wales showing glimmers of steady improvement.
“The UK government’s upcoming October budget announcement is expected soon, with strong indications that housing affordability will be a key focus.
“This hints at possible planning reforms, with expectations of measures to boost social and affordable housing, as well as additional support for first-time buyers, especially those struggling with large deposits.
“While house prices are still adjusting downward, sales activity is gaining momentum, suggesting that a slow but steady recovery might be on the horizon. However, the pace and nature of the recovery varies by region and property type, so potential buyers should stay informed about local conditions.”
