The LSL/Academetrics House Price Index showed a £284 drop in house prices since February and a fall of £1735, equivalent to 1.1 per cent, compared to the previous year.
The figures for March show that house prices have slumped overall by 2.7 per cent in the past three years.
Richard Sexton, director of e.surv, part of LSL Property Services, said a lack of mortgage deals was to blame. He added: “Welsh first-time buyers are finding it tough to secure a mortgage at a decent rate and many first-time buyers are being locked out of the market entirely so are having to stay in expensive rental accommodation.”
Mr Sexton said that as a result house sales were low, especially at the bottom end of the market. He said: “This has stifled activity higher up the property ladder, making the whole chain sluggish. Demand is high as people are desperate to buy and escape the expensive private rental sector but they are thwarted by strict mortgage requirements.”
However Mr Sexton said the signs for 2013 were more positive, adding: “As mortgage rates drop and the range of mortgage deals improves, there is much hope the housing market will make some great strides towards recovery this year. We are beginning to see this occur elsewhere in the UK.”
Glyn Jones, director of Denbighshire-based Vale Financial Services, said: “My view is prices are too high compared to earnings in the area. More people are renting than buying. Many people got into the market when prices were peaking but they can’t remortgage now and get better deals because loan-to-value is much less attractive now.”
Statistics:
2.7 per cent – fall in Welsh house prices in the past three years
£284 – drop in Welsh house prices from February to March
