One of Ireland's top estate agents has hinted that this year could see heightened activity in the country's housing market.

Sherry FitzGerald also suggested that 'notable' price stability could emerge.

According to the estate agent, price deflation in the property market came in at around 18% for 2008, with a variety of regional variations.

Dublin recorded the highest drops, with 20% knock-ed off prices, while in Cork prices dipped by more than 15%.

Sherry FitzGerald economist Marian Finnegan said these shifts had provided a very positive impact for affordability in the market.

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A factor, which she said: "Bodes well for enhanced activity levels in the weeks and months ahead."

Sherry FitzGerald has estimated house prices are down 30% from their peak in 2006.

Despite predictions of sluggish activity levels during the first number of weeks of 2009, Ms Finnegan said consumers will begin to digest the price correction and mortgage rate reductions on the affordability of their desired property.

She said her firm expects an uplift in viewing levels in the first quarter, followed by an increased in transactions around Easter.

"Given the limited quantity of new stock coming on the market it is likely that choice will begin to be eroded over coming weeks," said Ms Finnegan.

"That said, there is no doubt that the year ahead will remain a challenging one for the economy.

"However, the pace of price reduction and the speed with which it has transformed the market place, though difficult to digest on an individual basis, will facilitate a speedy realignment of market conditions with increased affordability returning to the market place," added the economist.

(PR/JM)