The auctioning of distressed properties at 60% below peak levels has brought down houses prices, it has been claimed.
Daft.ie revealed the average asking price of residential properties around the country fell to 196,000 euro in June, almost half of 2007 rates.
In Dublin, Cork, Galway and Limerick asking prices fell by 5.7% between April and June. Waterford city saw a 9% drop, with asking prices down by 10% in Donegal, Cavan, Laois and Offaly.
Ronan Lyons, economist with Daft.ie, said the second quarter of 2011 has seen one of the sharpest adjustments in prices over the last four years.
"With successful auctions of distressed properties at 60% or more below peak levels, the sharp fall may actually reflect increased realism on the part of sellers," he said.
"Other factors are also important though. One is the intense competition sellers face due to the high level of stock sitting on the market, especially outside Dublin.
"Another factor is that would-be buyers continue to face significant obstacles to obtaining a mortgage.
"Nonetheless, over half of properties posted for sale in Dublin at the start of the year are now sold or sale agreed."
The report by Daft.ie, the country's largest property website, is based on its database of properties including the 30,000 posted in the second three months of 2010.
It found the smallest falls in asking prices - less than 2% - were in Kerry and Mayo.