Affordability continues to be a "real challenge" for some house buyers, after prices in Wales rose by 4% in the year to June.

The market has shown "real resilience" with prices more than 7.5 times the average income in some areas, according to new figures from the Principality Building Society (PBS).

Anglesey topped the chart with a 22% annual rise, but 17 of Wales' 22 local authority areas saw price increases, the Wales House Price Index said.

Ceredigion was one of four regions to see a price drop and Aberystwyth estate agent Layla Mangan, said she has noticed "a lack of confidence" amongst buyers and sellers who were feeling "uncertain" about cost of living pressures.

The overall average house price was £258,129, but Andy Mottram of PBS said, while the market had shown "real resilience" with "strong price growth" in many places, "affordability was a real challenge for people".

Flintshire, saw no annual change and, of the four local authority areas to see a decline, Ceredigion had the the biggest drop of 9% - although Mangan said that did not reflect her experience in Aberystwyth.

First-time buyers were facing average house prices equivalent to four-and-a-half times household income in Cardiff, compared with just over three-and-a-half times in Blaenau Gwent where houses were cheapest, according to the data.

Blaenau Gwent saw a 47% increase in the number of mortgages issued between April and June compared to the first three months of 2026, the biggest increase in Wales.

First time buyer properties in the area cost an average of £155,000 with an overall house price of £167,239.

But Blaenau Gwent also had the lowest average household pre-tax income at £42,000 according to the report.

This contrasts with Monmouthshire which had the highest household income at £61,700 as well as the most expensive average house prices at £285,000 for a first-time buyer and £387,606 overall.

Layla Mangan from Alexanders estate agent in Aberystwyth said she was "surprised" at the 9.3% drop in prices recorded for Ceredigion.

"That's not been our experience" she said, "it's a hard market, yes, but it doesn't feel that we've dropped nearly 10%".

But Mangan said she has noticed "a lack of confidence" among buyers and sellers.

"We don't have to look hard to work out why that would be. What an uncertain time we're in," she said.

"I can understand people feel reluctant to wanting to essentially get into more debt. I understand that and it's hard at the moment."

"Everybody is really into house prices, whether you're a homeowner or not, because we can use it as this kind of thermometer, this gauge for what the economy and our finances are doing in general," she said.

"If you aren't looking at selling again in 12 months' time I'd hold your nerve, I'd go for it.

"We can't expect to be buying houses and making money on them straight away and where we go wrong is if that's what we're expecting."

The number of houses sold in a region can impact how much prices rise or fall compared to other places.

On Anglesey, which saw the biggest annual rise in house prices of 22.2%, the market can be a mixed picture.

Richard Tuke has lived on the island for 20 years but now wants to sell up and live in Spain.

"Anglesey has always been a desirable area for people to live," he said, adding he thinks the market is "not as bad as it was".

After several months of little interest he has twice reduced his asking price, from the initial £475,000 to £425,000, and that has made a difference.

"We've had a wave of viewings in the last two weeks and a lot of strong interest, so I think we're at the right price level now," he said.

The turbulence in the Middle East and the knock-on effects on oil and gas prices have already led to higher rates for fixed rate mortgage deals, and the Bank of England is widely expected to increase interest rates, making borrowing more expensive in the months ahead.

"If you look back over the year to date, the market's shown remarkable resilience in spite of those pressures," said Mottram.

"I think that's broadly likely to continue as we look forward."

Mottram said that despite building cost of living pressures, there were a variety of options for would-be home buyers.

"There's still going to be pressures," he said, but "if people are worried, the best thing they can do is talk to their lender or talk to a mortgage broker to understand their options".