The values of most average Irish homes were either falling or frozen over the past three months, with prices still rising in just 25pc of locations nationwide.

In Dublin, three-bed semis are now losing value at a rate of €1,500 per month, or €4,500 since June. Meantime, prices in the country's other major cities - Cork, Galway, Waterford and Limerick - remained unchanged in the past three months, but with time taken to sell increasing from six to nine weeks. In one location in four, prices are now falling.

Central Dublin locations saw prices down by 1pc over three months, and the North County area witnessed a similar fall in the order of 0.8pc.

South County Dublin homes lost 1.7pc of their value in the last three months. The price of the average three-bed semi in central Dublin (excluding the county area) now stands at €428,500 - down from €443,333 a year ago.

The latest Irish Independent/Real Estate Alliance (REA) Average House Price Index records movements in the sale prices of three-bed semis nationwide, Ireland's most average home type.

The new data represents the third consecutive fall in the value of three-beds in Dublin and overall, prices are down in the capital by 3.3pc compared with a year ago. The biggest falls in three months occurred in Clare and Wexford (both -2.7pc), Wicklow (-2pc) and Louth (-2.4pc).

Nationwide, just a quarter of locations surveyed showed growth. They included Laois (up 1.5pc), Leitrim (0.8pc), Roscommon (1.8pc) and Longford (2.6pc). The highest-rising values over the three-month period were recorded in Co Donegal (up 4.2pc).

Factors which are depressing prices include a big increase in stock for sale, of both new and second-hand homes. This is partly caused by a surge in new home construction, but also by a steady stream of small private landlords placing their investments on the market in numbers.

They are being hit by rent ceilings and high levels of tax on earnings, while competing with big funds which are acquiring whole blocks and benefiting from more favourable tax conditions.

Meanwhile, Brexit uncertainty has had a far more pronounced effect in recent months, particularly in upmarket locations. This has caused buyers who are worried about the effects on the Irish economy to postpone deals. South County Dublin, for example, saw prices fall by €7,000 in the last three months, to €412,000.

At the same time, Central Bank lending restrictions continue to keep prices from rising by much, if at all, once they hit €320,000 or so, the mortgage lending threshold for average to high earners.

Time to sell has also been increasing, with some parts of Dublin taking 10 weeks from launch to 'sale agreed' for the first time.

The overall Dublin average is nine weeks, alongside Cork, Limerick, Galway and Waterford cities, while time to sell in the rest of the country rose from seven to eight weeks.

"There has been a further 1pc reduction in cash buyers in the Dublin market in the past three months, with mortgage-approved house hunters now making up 88pc of purchasers," said REA spokesperson Barry McDonald.

Also affecting second-hand prices is the continued increase in building costs, which is pushing down the values of such properties in need of work.

The average semi-detached house nationally now costs €235,009, the Q3 REA Average House Price Survey has found - a drop of 0.43pc on the Q2 figure of €236,028.

Over 12 months, the average house price across the country rose by just 0.08pc. This compares with a 6pc annual rise to September 2018.

Galway agents report viewings are down as purchasers wait to see the outcome of Brexit talks, with sales taking 10 weeks to complete compared with seven a year ago.

"Average prices are at €282,500, up 2.7pc annually, and supply has reduced a little, although there are a number of new developments coming to market," said Mr McDonald.

Ireland's cheapest three-bed semis are to be found in Donegal, where prices have risen by 4pc to €99,000 in the past three months, after being static at €95,000 for the previous 18 months. Local agents report that limited supply, combined with growing demand in the lower price ranges, has driven increases across the county and some of this is likely to be driven by a small but steady rise in enquiries and sales to UK residents.

The effect is reversed, however, in other holiday home areas such as Waterford and Cork, which are reporting higher-than-usual sales of homes owned by British-born residents.

Longford records the largest annual rise in values, at 20pc, with prices increasing from €100,000 to €120,000 in 12 months, and by 2.6pc since June. There are almost no new build estates for sale in Longford, and second-hand homes are still selling at 40pc below the cost of building them.

Irish Independent