The average price of a second-hand property in Dublin fell by 1.1% during the second quarter of this year, according to figures from estate agent Sherry Fitzgerald.
For the first six months of the year, the decrease was 0.3%.
But Sherry Fitzgerald economist Marian Finnegan said the reduction showed all the signs of being temporary, as there was still strong demand and a shortage of supply.
She blamed the slowdown on a fall in consumer confidence, the foot and mouth scare, and what she called 'the significant and miscalculated Government intervention' in the market which included 'penalising' rates of stamp duty.
Ms Finnegan also noted that financial institutions had tightened the criteria for bridging finance over the past six months.
She said the problems facing the housing market had not been resolved, adding that a predicted fall in the supply of houses this year may bring about a return to accelerating price inflation by the end of the year.
