House prices in Wales have fallen for the first time in months. Bad news if you are selling – you might get less than you hoped. But don’t panic, there’s more to this story…

The average price of a house in Wales has dropped by 2.9% to £232,400. This follows a mini-boom after the turmoil of the mini-budget.

But it’s not all bad news. The number of homes actually being bought and sold has shot up. In fact, in the three months to the end of September, there were 18% more sales than in the previous 3 months. This suggests that, overall, the market is recovering after the disasters of the Truss/Kwarteng mini budget.

Where have prices risen?

Principality Building Society, who published the research, say that the picture is mixed across Wales, with some areas defying the downward trend:

• Merthyr Tydfil has had the biggest jump in prices, up by a whopping 9.1%
• Wrexham isn’t far behind, with prices up by 5.3%

Will interest rate cuts help?

There’s more good news for buyers – almost half of Principality’s customers say that the recent fall in the Bank of England base rate has made it easier to save up for a deposit. And with experts predicting more rate cuts to come, things are looking brighter for the property market.

What next?

Experts reckon that the Chancellor’s autumn budget might include measures to boost house building, with a particular focus on affordable homes for first-time buyers.

Shaun Middleton, from Principality, summed things up: “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.”