2008 has been a much anticipated and welcomed respite, not just for the house hunter, but also for the housing industry as a whole. This year 2008 has the potential to shape the fundamentals of design and expectations for the next 4 to 5 years. It is the first real buyers market since early 2002 and is a year for the skilled and knowledgeable house hunter, writes Patrick Durkan of Durkan Residential.

2006 was a detrimental year for the housing industry when the market soared out of control. Prices rose by 12% in this year alone and the market was most definitely working against the buyer. However, 2007 was a year of decline and adjustment of the housing stock in Ireland which was a direct result of the astronomical increases and out of control market of 2006. Prices declined between 7% and 12% in this year.

So what should we expect in 2008?

I believe that the accumulated price adjustments of the past 18 months are going to be realised in the first half of 2008. Interest rates have now peaked and all indicators are that the next move this year (if any) will be downward.

Many commentators have projected a decrease of 0.5%. Affordability has returned to less onerous levels and the level of monthly mortgage repayments has decreased from highs of 26.4% of net monthly income in 2006, to 22.6% as per 2005 levels. There are further predictions this percentage will fall further to 21.7% as early as March of this year. The supply of housing has been dramatically reduced and there may be shortages of stock, and a severe shortage of good stock in 2009.

The most important issue for the consumer is to realise that now is the time to take advantage of these recent changes. It is now the turn of the consumer to make the builder queue to take their details. It is going to be a highly competitive year for developers as buyers can now take time to judge the quality and reputation of who they are buying from and what exactly they are getting for their money.

What should the buyer be looking for in a development?

There is no doubt that the majority of sales in 2008 will be housing stock, apartments will most likely take longer to shift. It is very important that the buyer, when looking for value in the market, is aware of the fundamentals of what is involved in making the biggest investment of their lives.

When buying a home you have to put quality first and that can only be assured by the reputation and track record of the builder. Look at the build quality of the unit, assess the windows, the kitchen & bathroom quality, wardrobes, tiling and the interior finish in general, and remember that poor quality products will have to be replaced within a very short period of time.

Also look at previous developments delivered by the builder. Do they finish out the open space and the services as required?
Also in 2008 legislation in relation to the environmental rating of houses comes into effect with regard to house and apartment design.