The price of the average second-hand three-bed semi in Galway city has risen by 6% to €320,000 in the last three months, according to a national survey by Real Estate Alliance.

And the survey has shown that 35% of sales in the city are to first-time buyers, with 20% of all purchasers coming from outside the area.

The average time to sell has also fallen from four weeks to three this quarter, while across the county it remains at four weeks, the Q2 REA Average House Price Index has shown.

Prices in Galway county rose by 5.9% this quarter to €205,000, with 60% of sales to first-time buyers and 40% of buyers from outside the county.

“We have seen a very busy quarter, with properties exceeding their asking price as competition due to lack of supply extracted a little more than expected from the Galway city market,” said Kevin Burke of REA McGreal Burke.

“There are no signs of a fall-off in interest, however with prices getting back towards 2007 levels it is anticipated that more properties will come for sale and ease the increase in growth.

“There is continued strong demand as buyers from Galway city are moving to the commutable towns for more choice and value.

“Purchasers relocating from within Ireland and abroad are very active in the market, and generally speaking working from home has facilitated many buyers to look at regional towns as an option.”

The REA Average House Price Survey 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.

A marked increase in private landlords selling their properties nationally has increased supply levels and tempered price rises in some areas.

Up to 30% of houses for sale in some areas of Dublin are now due to landlords selling their additional properties, with knock-on effects for the rental market, the survey has found.

Actual selling prices in Dublin postcode districts have risen by 2.5% in the past three months, to an average of €493,333 – but the annual rate of increase has dropped two percentage points to 8% on the previous survey.

The price of a three-bedroomed semi-detached house across the country rose by 2.9% over the past three months to €286,611 – representing an annual increase of 13%.

The highest segment increase in Q2 was in cities outside the capital, which saw a 3.3% rise to an average selling price of €298,750.

Commuter counties saw prices increase by 2.3% – a jump of €6,833 to €311,833.

In the rest of the country, where prices rose 3.2% to €202,897, the survey found that one in every three buyers were from outside the county, with 50% first-time purchasers, as new working conditions enable a rethink on home bases.