The price of the average second-hand three-bed semi in County Westmeath has increased to €280,000, up 8% annually, according to a national survey by Real Estate Alliance.

This quarter, prices remained unchanged, and the average time taken to sell fell by one week to an average of four, the Q3 REA Average House Price Index shows.

“We are seeing very strong demand which has increased since last quarter, and a continuing shortage of supply,” said Donna Hynes of REA Hynes.

The survey shows that across the county, 60% of purchasers were first-time buyers and 30% of purchasers were from outside of the county.

A total of 10% of sales in the county this quarter were attributed to landlords leaving the market.

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) and Limerick (1.8% to €285,000) 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.