House prices in Pembrokeshire have dropped by 3% quarterly and 11.6% annually down to an average price of £241,276.

Prices in Pembrokeshire (£241,276), Carmarthenshire (£216,711) and Ceredigion (£264,496) have all fallen when compared with the same time last year.

The figures have been released from Principality Building Society’s Wales House Price Index for Q3 2023 (July-September), which reports the rise and fall in house prices in each of the 22 local authorities in Wales.

Principality’s report shows that Pembrokeshire has experienced a quarterly drop of 3% and an annual fall of 11.6%. Carmarthenshire experienced a similar quarterly drop of 3.4%, and is down 7.0 % when compared year-on-year.

Ceredigion is the only county in West Wales to have recorded an increase during the third quarter, up 2.5%. However, when compared to this time last year the average house price is down 6.3%.

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% and an annual drop of 2.6%, 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.

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