While house prices are not soaring ahead the way they were a year ago, last month saw the return to the market of more buyers.

Steven McCarron, the Managing Partner of Donnybrook estate agents, told the 'Journal' yesterday that sales in recent weeks had helped to life the market again.

"There has been a marked improvement in the property market for the first time in three months.

"Whilst prices have dropped back to a level last seen about 18 months ago we can now see signs of positive recovery. For example a property that would have been making £195,000 at the peak of the market is now selling for £175,000 to £180,000.The key word being 'selling' as opposed to just sitting on the market," said Mr McCarron.

He went on: "These figures are more realistic and obviously more affordable. It is clear to me that first time buyers are now able to enter the market and the signs are good for them with another potential interest rate reduction on the horizon.

"Potential purchasers should also be aware of the fireside Estate Agents and Financial analysts who are advocating people holding off because the market will fall further risk losing out and getting caught up in the rush.

"My advice is this...can anybody remember the last time a home could be bought for sub £100,000?

"Well it is now a reality and our clients Hagan Homes are selling property from under £100,000 at The Old Fort, Strathfoyle and this will only last for a limited period.

"In my opinion the market is on the rise again."

The renewed confidence comes just days after a Sunday Times survey gave
a boost to the property market in Co Donegal.

While other parts of the Republic may see prices fall in the next year, Donegal home prices will stay steady, thanks to a lower price base.

In the most comprehensive survey ever seen in the housing market in Ireland, experts predict prices here will not fall over the next 12 months.

The report says people buying homes now - in all categories - will not lose value over the next 12 months due to the low price base in the county compared to rest of the Republic.

More movement of buyers from Derry has helped to maintain prices.
Anthony Arthur of Letterkenny based Liberty Properties told us: "This reflects what we have seen in January. Yes, people are shopping around, but we are selling houses OK.

"The problem is that people see prices drop in Dublin or Belfast and think that's them, but Donegal is unique. It is almost a separate entity when it comes to house prices and value for money in this county is still superb.

"Stories in Dublin or London newspapers bear no resemblance to the market here. We sold two new homes out of our portfolio last week to first time buyers who were extremely happy with what they got.

"The fact that prices will not drop here over the next year shows a positive future for the Donegal property market and we're delighted by that."