House prices have dipped across West Wales in the third quarter of 2024.

The figures, released by Principality Building Society's Wales House Price Index, show a slight decrease in house prices in Pembrokeshire, Carmarthenshire, and Ceredigion.

Pembrokeshire saw a small quarterly dip of 0.2 per cent, bringing the average house price down to £250,756.

Ceredigion experienced a fall of 0.4 per cent, with the average price now at £269,585.

Carmarthenshire witnessed the most significant drop, with a quarterly decrease of 6.6 per cent and an annual drop of 5.9 per cent, resulting in an average price of £203,356.

This decline follows a rise in house prices across these areas in the second quarter of 2024, when Ceredigion saw the fastest rate of increase in Wales.

The average price of a home in Wales dropped to about £232,400 in the third quarter of 2024, which is 2.9 per cent below October 2023 figures and almost 7 per cent below its peak of £249,000 at the end of 2022.

Despite the overall downward trend in prices this quarter, there were around 11,200 transactions in Wales in the third quarter of 2024, 18 per cent more than in the second quarter and 11 per cent up on the same period a year ago.

Shaun Middleton, head of distribution at Principality Building Society, said: "The third quarter of 2024 signifies a slow and steady recuperation of the housing market, despite house prices adjusting slightly down in the third quarter, following an uptick in the second.

"Across Wales, developments at authority level are mixed, reporting no clear direction with house price trends.

"Nevertheless, there is a clear upward trend in sales, demonstrating that market activity is overall looking positive.

"Accounting for seasonal impacts such as the general election and time of year, the data supports a gradual market upturn, with Wales showing glimmers of steady improvement.

"The UK Government's upcoming October budget announcement is expected soon, with strong indications that housing affordability will be a key focus.

"This hints at possible planning reforms, with expectations of measures to boost social and affordable housing, as well as additional support for first-time buyers, especially those struggling with large deposits.

"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 vary by region and property type, so market participants should stay informed about local conditions."