1. Homes are a lot cheaper: The Permanent TSB/ESRI House Price Index show that house prices have fallen by 18% in the last 24 months (to end of Feb 2009).
The real drop in house prices is probably a lot bigger than this, due to the way they calculate their figures. In fact, IMAF (Independent Mortgage Advisers’ Federation) say that house prices have actually fallen by 30% on average since their peak in summer 2006. While that’s bad news for home owners, it’s good news for first time buyers.2. Interest Rates have been slashed: The European Central Bank (ECB) have dropped interest rates by 2.5% in the last 6 months. The drop represents a saving of over €400 on a €300,000 mortgage over 30 years.

3. Interest Rates have just been cut again!
Interest rates are expected to drop even further. The ECB has indicated a further 0.25% drop in May.

4. A “Mortgage War” has started as banks battle for first time buyers. Bank of

Ireland, ICS Building Society & AIB have started a mortgage war, targeting first time home buyers. They’ve promised to offer more finance to first time buyers in 2009, than they did in 2008, and they are offering rates as low at 2.40% (2.43% APR)5. Mortgage Interest Relief was increased for First Time Buyers in late 2008. Mortgage Interest Relief is a tax relief that the government gives to home buyers to help with their mortgage payments. A couple buying their first home can now claim up to a maximum of €416 back each month in the first two years.

6. In many cases it has become cheaper to buy a starter home than to rent. With lower prices and interest payments, it is now possible to buy a starter home for less than it would cost to rent a house or apartment.

It’s a Buyers Market, a lot of factors stack up in 2009 to create the best opportunities for buyers, they have the upper hand in the negotiating process.