The price of the average second-hand three-bed semi in Cork has risen to €217,500, up 5% annually from €207,500, according to a national survey by Real Estate Alliance.

Prices across the county have remained unchanged this quarter, the Q2 REA Average House Price Index shows.

In Cork city, prices have risen to €360,000 this quarter, up 1.4% from €355,000 at the end of March.

Across the county, the average time taken to sell is currently averaging at five weeks.

Agents are reporting that first time buyers account for 55% of purchases in the city this quarter, and 35% of purchases in the county.

Buyers from outside the county accounted for 20% of purchases in the city this quarter, and 10% of purchases across the county.

The report also shows that 25% of the sales in the city, as well as 40% in the county, are directly linked to landlords leaving the market. 

“There continues to be good demand from first-time buyers in the new homes market since the start of the year, which is reflected in a general increase in sales and new developments coming on stream,” said Michael O’Donoghue of REA O’Donoghue & Clarke, Cork.

“With the first signs of inflationary pressures easing, overall demand continues to be good with a mixture of both cash purchasers and mortgage approved clients.

“However, further interest rate increases are of concern in the short to medium term and landlords continue to exit the market.

“While the level of bidding has slowed somewhat, there remains steady demand in relation to all property types in both the city and its surrounding satellite towns.

“Demand for both new and second hand homes in the West Cork area continues to be good, with continuing UK interest since the start of the year.”

The REA Average House Price Index concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.

The actual selling price of a three-bedroom, semi-detached house across the country rose by 1.3% over the quarter to €297,056 – representing an annual increase of 6.6%.

The price of a three-bed semi in Dublin city has hit €500,000 for the first time, rising by by 0.3% in the past three months. They are now 14% ahead of their €431,000 Celtic Tiger peak level, with demand being largely driven by first-time buyers in an otherwise cautious market.

Time taken to reach sale agreed nationally has risen to six weeks as REA agents reporting that pricing levels are key in a sensitive market.

Cities outside Dublin experienced a 1.53% rise to an average selling price of €315,000 – an increase of 8.9% in the past 12 months.

Commuter areas rose by 0.4% to €315,389, with 41% of buyers coming from outside the county, a large proportion of them from the capital, with 72% of sales to first-time buyers.

The highest three-bed semi price rises came in the country’s main towns which rose by 2.24% in the past three months to an average of €216,517, with time taken to sell at five weeks.

Areas that attract holiday home buyers have noted an increase in UK or cross border interest with examples such as Bantry and Bundoran both recording €5,000 average increases in the past three months.