The price of the average three-bed semi in County Kerry is expected to fall by 5% in the next 12 months, according to a survey by Real Estate Alliance.

Three-bed semi-detached homes in the county now cost an average of €292,500, up 11% on the December 2021 average of €263,000, the Q4 REA Average House Price Index shows.

However, average house prices have fallen by 2.5% in the past three months as mortgage interest rate rises and cost of living increases combine to calm the market.

The survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the second-hand property market in towns and cities countrywide.

First time buyers made up 35% of the market in Kerry in Q4 2022, with 35% of sales coming from outside the county.

Across the county, the average time taken to sell was eight weeks, up from six in Q3.

Average Killarney prices fell by -2.78% this quarter to €350,000, while Tralee prices dropped by 2% to €235,000.

“The market has slowed with the number of viewings down 30%. House prices have softened a small bit but are still selling,” said Donal Culloty of REA Coyne and Culloty, Killarney.

“There still is a huge demand problem as no new developments are commencing due to high land prices and the cost of construction.

“The housing problem is now at crisis level and only going to get worse. We need new properties to be built.”

The majority of REA members feel that the scheduled changes to the Planning Acts will have little effect on market supply in 2023, due to the time lag between legislation and enactment.

The actual selling price of a three-bedroomed semi-detached house across the country rose by 0.36% over the past three months to €291,667 – representing an annual increase of 8%.

However, house prices in Dublin have fallen slightly by -0.34% in the same period, as mortgage interest rate rises and cost of living increases stem the stream of potential homeowners.

REA agents throughout the country expect prices to rise by just under 3% on average in the next 12 months.

The property market is expected to enjoy a calmer 2023 as mortgage interest rate rises and cost of living increases affect buying ability, according to the nationwide survey.

In Dublin city, which is currently experiencing small price drops in certain areas, agents anticipate modest increases of 3.6% across the year.

This comes off the back of a 2022 which saw average house prices rise by 8% nationally and 5% in the capital – with feverish early year increases slowing down in the autumn and winter.

The country’s large towns experienced 10% growth last year, with 1.2% in the final quarter, and REA agents say that this will continue throughout next year, albeit at a slower pace, with growth of 3% predicted.