The latest Daft.ie house prices report shows that in Donegal, prices in late 2012 were 18% lower than a year previously, compared to a fall of 13% seen in the year to late 2011.
The average house price is now €123,000, 54% below peak levels.
Ronan Lyons of Daft.ie says that in Donegal there is an over supply of houses which is forcing their prices down:
Podcast: Play in new window | Download