The price of the average second-hand three-bed semi in County Clare has risen to €240,000, an increase of 4pc from €230,000 in the last twelve months, according to a national survey by Real Estate Alliance.

The Q4 REA Average House Price Index shows that first time buyers made up 60% of the market in the county, with 5pc of sales coming from outside the county and 45pc attributed to landlords selling.

Clare agents are reporting that the average time taken to sell in the final quarter of 2023 dropped by a fortnight to a total of six weeks.

“The limited supply of second-hand stock and new developments is still driving prices upwards on good quality homes,” said Liam Browne of REA Paddy Browne, Ennis.

“With rents increasing, it is still economically favourable to have a mortgage rather than letting.

“With inflation reducing and potential ECB interest rate reductions in the new year, the upward trend will more than likely continue well into 2024.”

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.

Three-bed semi prices nationally will rise by 3pc in 2024, estate agents nationally are predicting.

A record shortage of supply has driven a 1.5pc rise in the last three months in the capital, but only in houses under a certain price, the index found.

House prices in Dublin and the other cities outpaced Ireland’s large towns and commuter counties as mortgage approved buyers chase properties within their price ceiling.

The actual selling price of a three-bed, semi-detached house across the country rose by 1pc in the final quarter of 2023 to €304,259 – representing an annual increase of 4.3pc.

Time taken to reach sale agreed nationally is steady at five weeks as low supply continues to drive sales in an increasing interest rate environment.

Prices in Dublin city rose by 1.5pc in the last three months, meaning that the average three-bed semi in the capital is now selling at €511,667 – an increase of 3pc in the last year.

Mortgage-approved first-time buyers are still the main market drivers, with 59pc of sales nationally – a figure that rises dramatically to over 80pc in commuter counties as they hunt suitably priced properties.

Cities outside Dublin experienced a 1.73pc rise in the past three months to an average selling price of €323,000 – with the annual rate of increase of 4.5pc.

Homes in the commuter belt showed the most stability in 2023, rising by just 2.2pc to €319,722, with counties within travelling distance of the capital recording growth of just 0.2pc in the past three months.

The biggest annual rise came in large towns nationwide, which rose by 6.6pc annually and 1.2pc in the quarter to €223,638.