Donegal house prices rose at twice the rate of the national average, according to the latest DAFT.ie report.
The county had the sharpest increase in a year, at 19%, up from 16% in the previous year.
Nationally, house prices rose by 9.5%. Neighbouring Leitrim also recorded 19%.
In the second quarter of 2022 alone there has been a nationwide increase of 3.8%.
The average listed price nationwide during that period was €311,874, up 9.5% on the same period in 2021. However, it is still around 16% below the Celtic Tiger peak.
In Donegal, the average price of a home is now €200,000, 76% above its lowest point.
The rural-urban gap in housing inflation continues to narrow, although rural areas are still seeing the largest increases.
Outside the cities, prices rose by 11.4% in the year to June, down from a peak rate of inflation of 16.8% a year ago.
In Dublin, the year-on-year change in prices was 6.6%, compared to just 3.4% at the end of 2021.
The other cities have seen larger increases in prices in the same period, however: in Cork, prices were 9.4% higher than a year previously, while in Limerick city, prices were up 11.1%. The biggest increases in urban housing prices were in Galway (13%) and Waterford cities (13.5%).
Report author and economist at Trinity College Dublin, Ronan Lyons said Ireland’s housing market has been characterised for a number of years by strong demand, boosted recently by unexpected savings, but supply that has been steadily weakening.
“There are some signs that both sides of the market may be turning,” Mr Lyons said.
“On the supply side, the number of homes listed over the last twelve months has increased by 30% since early 2021, although it still remains 15% below the peak in 2019, while construction of new homes is set to reach a post-Celtic Tiger high this year.”
On the demand side, he added, the rise in interest rates, prompted by inflation, will feed through to housing demand in due course.
“At the same time, sentiment among those active in the housing market has eased back, with expected inflation in housing prices over the next year below 1%, compared to over 5% three months ago.
“Expected inflation is one of the key drivers of immediate housing demand, so if prospective buyers feel they have more time to choose, they may take that opportunity.”
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