House Price Sales Continue to Grow

Pent-up demand in the housing market is driving the number of sales, with Zoopla reporting 13% more sales agreed and Rightmove reporting the average price of properties coming on to the market reaching a new record of £375,131 – up 0.8% this month. Here we give you an overview of some of the key developments through May for the UK as a whole, as well as some local insights on the West Wales property market.

In Brief

Nationally the market has seen – 

• The average price of property coming to the market for sale reached a new record of £375,131¹.
• The monthly price rise for May is 0.8%, reflecting growing confidence¹.
• Prices are 0.6% higher than they were a year ago, with the market remaining price-sensitive¹.
• Top end properties continue to drive price growth, with prices up 1.3% compared to last year¹.
• The average time between agreeing a sale and legal completion is 154 days¹.
• Properties that need to reduce their asking price take over three times longer

to find a buyer than those that price right at the outset¹.

• Momentum continues with 13% more sales agreed this month².
• The number of homes for sale is up 20% year on year – more than at any point in the last eight years².
• Zoopla predicts that the general election is likely to reduce the upward momentum in sales agreed, but committed buyers will continue to secure sales².

In terms of the Welsh property market –

• The average house price in Wales is now £265,271, up 0.8% over the last month, and up 2.2% year on year¹.
• The average number of days for a Welsh property to be on the market before a sale is agreed is now 74¹.

¹Source – Rightmove

²Source – Zoopla

Overview

The positive spring selling period has continued into May, with Rightmove reporting record asking prices driven by pent-up demand. They have seen the average property coming to the market reach £375,131 – up 0.8% in the month,

Zoopla however, are reporting stabilisation in the market year on year with a 0.1% fall in prices – the average house price in the UK according to their stats is now £264,300. According to Zoopla data, it is the semi-detached and terraced house markets that are performing best, seeing a 0.6% and 0.9% increase respectively, year on year. This is reflected in our regional breakdown, which you can read further down in this article. 

A couple of interesting points raised by Rightmove are the importance of realistic pricing. Their research shows that pricing high and then having to reduce the asking price means it takes three times longer to find a buyer. The report also highlighted that the average time between agreeing a sale and legal completion is now 154 days. 

Zoopla highlighted that the pace of annual price inflation has improved modestly over the last three months, and this has helped keep house prices largely unchanged in the year to April 2024. However, they highlighted a clear divide between regular small annual price falls in southern England and the modest gains in house prices seen in the rest of the UK.

Another interesting point raised by Zoopla is that cities in coastal areas and areas that attracted a surge in demand during the pandemic are now seeing above-average price falls, as demand has weakened following the pandemic.

In summary, while spring 2024 has been performing well, it is still a price-sensitive market due to mortgage rates and inflation. For those keen to secure a quick sale, marketing at the right price from the start is key. 

Insight from Cardigan Bay Properties

Each month we bring you the latest industry insights and comments on the property market to help aid your decisions when it comes to buying and selling. Both Rightmove and Zoopla give us a good overview of the national position, but we also carefully monitor our local market to ensure you have information about our key regions of Ceredigion, Carmarthenshire and Pembrokeshire. 

Last month we highlighted the impact of summer’s sporting events – the Euros 2024 and the Olympics in Paris – as well as the General Election and summer holidays, and this influence is continuing – encouraging buyers and sellers to act before the distractions of summer. 

Demand is particularly being seen for semi-detached and terraced properties – something that both the national overviews and the regional insights have picked up. With continued positivity in the market and a general stabilisation of prices, we are seeing more new properties come onto the market and more sales agreed. 

In May we brought 19 new properties to the market (up from five in May 2023), with seven new property sales agreed through the month. This follows on from a strong April 2024, which ended with five property sales agreed. 

In terms of sales, the start of this year saw the majority of property sales for properties priced over £300,000 – reflecting the national trend that highlighted top end properties are performing well thanks to their limited reliance on the mortgage market. However, this month has seen stronger demand for more of the middle level properties – semi-detached and terraced houses – indicating that spring positivity is spreading to the wider market.

Your Regional Insights

Below we give you an overview of the latest House Price Index results for our key regions – Ceredigion, Pembrokeshire and Carmarthenshire. Please note, that each month these figures are two to three months behind due to the Land Registry taking longer to register new sales, so this report includes sales up to the end of March 2024.

To help you follow the trends for these regions, the graphs below show figures from July 2019 (pre-Covid pandemic) to March 2024

CEREDIGION

March 2024 saw a slight drop in the average property price in Ceredigion. The average property price in the area is now £243,965, down from £244,190 at the end of February 2024. For specific property types, detached houses now average £310,614; semi-detached average £206,800; terraced houses £179,202; and flats £117,398.

While average prices have dropped slightly over the last month (except for semi-detached properties which increased very slightly), the yearly percentage change for properties in Ceredigion saw an increase of 4%, which follows an increase of 1.8% in February 2024. The biggest yearly percentage change was for semi-detached properties, with prices up 5.5% year on year, followed by terraced houses which were up by 4.4%. The average monthly change for the region was down 0.1% – with terraced houses experiencing the largest monthly change, down 0.3%, while semi-detached houses saw a 0.1% increase month on month.

View the full Ceredigion report.

PEMBROKESHIRE

Pembrokeshire is another popular region for buyers and here the House Price Index Report shows a slight increase in the average house price – up to £227,679 in March 2024, from £227,297 in February 2024. The growth is driven by detached and semi detached properties. The average price of a detached home was £315,230 in March 2024 (up from £314,190 in February 2024), while the average price of a semi-detached home was £203,183 (up from £202,376 in February 2024). Both terraced houses and flats saw a very slight drop over the same period.

When we look at the yearly change, prices are up 0.8% overall year on year, with the biggest increase seen for semi-detached houses – up 2.2%. In addition, the monthly percentage change saw an increase of 0.2% for March 2024, with semi-detached houses again driving this increase – their prices are up 0.4%.

View the full Pembrokeshire report.

CARMARTHENSHIRE

Properties in Carmarthenshire experienced an increase in the average price for all types of property in March 2024. This month the average property price increased to £200,939 – up from £196,771 in February 2024.

However, the yearly percentage change for the region fell by 2.2% – the seventh successive fall. The biggest price drop was again in the flat/maisonette sector (down 4.7%), while semi-detached properties held up best with a drop of 1.6%.

Comparing monthly price changes, March 2024 showed a 2.1% increase across all property types – that compares to a drop of 1.8% in February 2024, with detached properties showing the largest growth at 2.4%,

View the full Carmarthenshire report.

CURRENT UK HOUSE PRICE INDEX

* As of March 2024, the average house price in the UK is £282,776, and the index stands at 148.3. Property prices have risen by 0.7% compared to the previous month, and risen by 1.8% compared to the previous year.

*Details provided by the Land Registry. For more information on the House Price Index please CLICK HERE

Please note that the stats provided by the UK House Price Index are live and constantly evolving.