House prices are forecast to grow by two per cent across Wales next year, according to new figures from Hamptons.
That is less than the firm's prediction of a three per cent rise across Great Britain in 2025.
Aneisha Beveridge, head of research at Hamptons, said: "As the end of 2024 approaches, the mood of the housing market has shifted from trepidation to cautious optimism.
"Lower mortgage rates have been the principal catalyst for change, falling more rapidly than we expected.
“Even though an improving affordability picture, driven by lower mortgage rates and robust pay rises, looks likely to fuel price increases and transactions in 2025, higher rates for longer will weigh on long-term growth.
"The combined effect of persistently higher interest rates and sluggish economic growth is likely to dampen long-term house price performance compared to previous cycles.
"It will also remain a barrier to homeownership for many would-be first-time buyers, limiting longer-term transaction numbers."
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