FIGURES REVEAL UPS AND DOWNS OF HOME PRICES
HOUSE prices in Wales for last year reveal only two counties experienced a notable increase in the average cost of a home.
Seven counties saw the average house price remain virtually unchanged and 12 locations saw a more noticeable decline.
It’s been a wild ride when it comes to house prices in Wales over the past four years. While the impact of the Covid-19 pandemic saw breathtaking increases in house prices in some Welsh areas and Wales regularly recording the highest rises throughout the UK, the disastrous mini budget that followed quickly caused mortgage rates to soar and continued economic instability.
Researchers at Welsh conveyancing firm Devonalds Solicitors say they have conducted a thorough analysis of house price data from January to December last year that can indicate how each county’s house prices fared during the year.
Rhian Derrick, partner at Devonalds, said: “Fluctuating house prices, as evidenced by the recent data from the House Price Index, underscore the inherent volatility within the property market.
“Some notable decreases in average house prices over the course of 2023 reflect a challenging landscape for homeowners and prospective buyers alike. Such fluctuations can significantly impact investment decisions and financial planning.
“As house prices decrease across areas within Wales, homeowners may face challenges in maintaining the value of their properties, potentially impacting their equity and financial plans. However, for prospective buyers, this presents an opportunity to enter the market at more affordable rates, potentially realising their dream of home ownership sooner than expected.”
The county breakdown of house prices for 2023 reveals only two counties, Vale of Glamorgan and Pembrokeshire, experienced an increase that is notable, with Gwynedd’s figure just over 1%.
In total, seven counties had an insignificant change of less than one per cent, either up or down.
It’s the decrease in house figures that the company has produced that are the most significant, with one county experiencing the largest decline. Ceredigion, according to the data, has seen a drop in its average house price of -8.33% from £254,595 in January 2023 to £233,387 in December 2023, which equates to around £21,000.
The area had seen one of the largest house price increases during and just after the pandemic. The year-on-year comparison of house prices produced by the Office of National Statistics (ONS) for November 2020 to November 2021 revealed Ceredigion was the region of Wales to show the highest growth in annual average house prices, with a substantial 24.6% increase recorded.
As a county Ceredigion overtook Pembrokeshire and Carmarthenshire in coastal popularity, with house buyers desperate to escape more urban areas at that time.
At the time James Skudder from Country Living Group estate agents said: “We are seeing buyers who in large are not able to secure properties in what have traditionally been more popular areas, really widening their search parameters. The latest ONS figures are testament not only to the unique variety of homes located here, but also the fantastic value for money for the properties on offer.”
The county remains a stunning place to call home, but the house price landscape has altered. And after experiencing one of the most significant regional increases maybe it’s not such a shock then to see the average price drop back down by the most in Wales.
Rightmove states that the majority of sales in Ceredigion during the last year were detached properties, selling for an average price of £330,002. Semidetached properties sold for an average of £222,073, with terraced properties fetching £197,079.