The average house price in Wales has increased in the second quarter of 2024 for the first time since December 2022.

Figures from Principality Building Society’s Wales house price index revealed that the average house price between April and June 2024 stood at £236,369.

The average house price has increased by 3.1% quarter-on-quarter, which Principality said has been driven by the majority of local authorities reporting higher prices in Q2 for the first time since 2022.

However, the average price of a home in Wales is still down 2.4% annually, and 5% below the peak of £249,000 in December 2022.

Head of distribution at Principality Building Society, Shaun Middleton, said: "The second quarter of 2024 has brought much-needed positive news to the Welsh housing market. After five consecutive quarters of declining house prices, we are now seeing a recovery.

"The picture across Wales shows that local authorities have been reporting quarterly price increases, rather than decreases, for the first time since 2022, translating into a steady rise in house prices.

"This increase, bringing the average price to £236,369 in Wales, marks a significant turnaround and suggests that the market may be stabilising. The last few years have marked the most challenging housing market conditions since the global financial crisis in 2008, with first-time buyers encountering the toughest conditions in about 70 years, according to the Building Societies Association."

In terms of regions, 15 out of 22 local authorities reported price rises when compared to the previous quarter, with Bridgend and Ceredigion recording double-digit increases of more than 16%.

Year-on-year, 11 local authorities still reported declines, with Wrexham experiencing the biggest drop of 10% when compared the same period a year previously.

The number of transactions in Q2 jumped by 24% quarter-on-quarter and 16% annually to 10,200, which Principality said is an "area of growth" for the Welsh housing market, as quarterly transactions have continually declined since late 2021.

Middleton added: "Looking ahead, the new UK Labour Government are moving forward with a significant legislative move aimed at accelerating the development of infrastructure and the construction of 1.5 million homes in England, meanwhile the Welsh Government has committed to deliver 20,000 new low-carbon homes for rent within the social sector during the current term.

"Together with our insight, this suggests that the second quarter may well represent a new dawn for the housing market in Wales, as we expect house prices to increase, with a higher volume of transactions, supported by better economic conditions, increased affordability and growing buyer interest."

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