The price of the average second-hand three-bed semi in Limerick city has increased to €285,000, up 1.8% from €280,000 in the last three months, according to a national survey by Real Estate Alliance.

Average prices in the county rose to €235,000 this quarter, up 2.2% from €230,000, the Q2 REA Average House Price Index shows.

Limerick city has seen 65% of sales directly linked to landlords exiting the market, according to REA Dooley, who predict that the extension of the rent pressure zones to the whole county will result in a larger supply of ex-rental housing coming to market.

“Quarter three has seen a modest increase in prices and also a notable increase in stock,” said Pat Dooley, REA Dooley.

“More interest rate hikes would suggest that property prices should be nearing peak soon.

“A notable decision to increase rent pressure zones to all of Limerick county as well as the city should see an increase in notices to terminate and a larger supply of rental houses coming to market.”

The survey also shows that across both the city and county 75% of purchasers were first-time buyers, and 40% of purchasers across the county as well as 25% in the city were from buyers outside of the county.

Across the county, the average time taken to sell in Limerick city is currently three weeks, and in the county the average is currently four weeks.

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-bed, semi-detached house across the country rose by 1.4% over the quarter to €301,370 breaching the €300,000 mark for the first time since 2007.

House prices in Ireland’s large towns rose by 2% in the past three months and are increasing at twice the rate of Dublin and the major cities as mortgage approved buyers chase properties within their price ceiling.

Time taken to reach sale agreed nationally fell from six to five weeks as low supply continues to drive sales in an increasing interest rate environment.

Prices in Dublin city rose by 0.8% in the last three months, meaning that the average three-bed semi in the capital is now selling at €504,167 – an increase of 1.3% in the last year.

Nationally, 57% of sales are to first-timers, a figure that rises dramatically to 85% in Wicklow, Meath and North County Dublin as mortgage-approved buyers hunt suitably priced property.

Cities outside Dublin experienced a 0.73% rise to an average selling price of €317,500 – with the annual rate of increase halving to 4.5% from the previous survey.

Prices rose in Cork (1.4% to €365,000), while Waterford city and Galway remained static.

Commuter areas rose by 1.1% to €318,889, with 39% of buyers in areas such as Louth, Meath, Kildare and Wicklow coming from outside the county, a large proportion of them from the capital, with 73% of sales to first-time buyers.