"It's simply an extraordinary figure for 2005, " says Marian Finnegan, chief economist with the Sherry FitzGerald group, "especially when you consider that only two years ago, only 185 houses sold for over 1m, while there were 320 in 2004."

There was "exceptional buoyancy" of demand for second-hand homes and "exceptional consumer confidence in the market", says Finnegan.

But as they say in all the ads for financial products, past performance is no guarantee of future returns, so what are the prospects for those sell ing this year? The confidence of estate agents about this year's prospects is tangible.

Ken MacDonald, who sold over 6,500 new homes in 2005 with a sales value of as much as 2.25bn, says demand is stronger than ever.

"Since the moment we opened after the holiday period on 3 January, the phones have been hopping. We're very confident about the strength of demand because the demographics are so strong."

What happened to the second-hand property market last year is being taken as an omen of more good times to come, particularly at the confidencesensitive top end of the market.

This is because all the economic indicators underpinning property, from full employment to national growth to tax reductions and SSIA encashments, will build on the bonanza that was 2005.

Sherry FitzGerald's figures show that second-hand home prices nationally went up 17.3% by the end of 2005, while in Dublin the pace of inflation was even stronger . . . up 23.3% by the end of last year.

The exemption properties under 317,500 from stamp duty for first-time buyers was a once-off boost, prompting strong growth at this end of the market, but as the year went on, it became apparent that the real heat was at the hugely wealthy top end.

The huge level of wealth being built up by people who own property is encouraging buyers at all levels to stretch themselves because the returns are so rewarding.

To take just one example . . .

when Pitcairn on Shrewsbury Road sold for £1.5m back in 1996, it was front-page news.

Nine years later, Sherry FitzGerald set a new record for the road . . . 58m for Walford, a huge redbrick house on 1.8 acres of gardens.

In those nine intervening years, scarcely one has gone by where economists of varying hue have not predicted a property crash. Yet only one year, 2001, proved in any way difficult for buyers, be they starting out on the ladder, investors, trader-uppers or buyers of substantial trophy homes.

Property advisers believe this is once again a good time to sell because demand is so strong. It's also a good time to buy, says Finnegan, because the values of second-hand properties are likely to rise by around 12% this year, and possibly more in well-located parts of Dublin, Cork and Galway.

"All the economic indicators that created such a strong feelgood factor last year are still there, " she says. "The only exception is that interest rates have started to rise. At the end of last year, people got a mortgage statement telling them they would have to pay more.

But even so, the likelihood is that rates won't go up significantly . . . perhaps 0.5% . . . which will temper the amounts people borrow slightly and may keep rises down from the exceptional figures we saw in the phenomenal year 2005 turned out to be. The overall economic factors are all supportive of another good year.

They talk about the Celtic Tiger as if it was in the past, but it is back . . . and roaring."

Last year stood out not just because the rate of growth was phenomenal, but because it continued in every quarter of the year. Sherry FitzGerald's figures show that the final quarter rise was 3.7% nationally and even stronger in Dublin, at 5%. But, says Finnegan, the first quarter is always a good time to sell.

"Traditionally, the largest proportion of the gains made in a year occur in the first quarter. Properties are scarcer and, for buyers, it is a difficult time because they have less choice.

It means properties sell more quickly, and given that we're predicting rises of 10% to 12% for 2006, you could expect to make at least a 3% gain by selling before March."

For sellers, if they have their own property sold in the next two to three months, it also means they have cash in hand to meet the auction market when it springs back to life in March and April.

First impressions that make a redbrick. . .

YOU don't have to be 'designer of the year'to see the effects that ill-suited PVC doors and windows have on period houses.

These four, brick homes all dating back to the late 19th and early 20th century are a good example of the difference between a well-presented home with attractive doors and windows, and a home which looks inappropriate and unappealing.

The two houses with instant appeal from the very first impresson have old wooden doors brightly painted in fresh colours. And while only one of the houses has the original sash windows, the second house has good 'imitation' sash-style windows.

The owners have also made the best of having tiny railed front gardens. The pair of clipped bay trees at the window and bright window boxes bring life to the front facade of one of the houses, while the house which opens directly onto the pavement is an exercise in scrubbed cleanliness.

The other two houses, although very attractive redbricks in good condition, suffer from the lack of original windows and doors.

However no doubt future owners, cash-flow permitting, may eventually replace the PVC with timber.

. . . and some key mistakes to avoid

When this house was initially photographed for sale, it had building rubble out the front and some plastering on the new extension remained incomplete, all of which overshadowed the fact that it's a beautiful property presented in excellent condition inside.

However since being completed and newly photographed, this large family home is showing its true colours and should draw a lot more attention from potential buyers.

It's a perfect example of how simple things such as bins, children's outdoor toys and a generally unkempt and dreary "rst impression can turn buyers off. One look on a website and you would have no idea that the interior of this house is tastefully refurbished in a smart and contemporary style.

Gardens don't have to be award winners, but all outdoor space should be as clean and uncluttered as the interior.

This untidy and unkempt patio garden does no justice to the overall property and provides few imaginative pointers for the prospective buyer.

If the paving stones were weed-free, a few potted plants put in place and the trellising got a lick of paint, it could look like a very attractive addition.

De-cluttering inside is important - but don't take it to the limit of this bedroom where a bare mattress and the cold walls make it a room without warmth or imagination.