But it is likely to be a soft landing, with prices expected to resume growing at more sustainable ''low single-digit rates'', and the pause should help keep interest rates from rising again soon.

RP Data-Rismark's hedonic home value index, issued yesterday, found that after 17 consecutive months of increases and double-digit gains last year, capital city house values fell a seasonally adjusted 0.7 per cent in June nationally, and by 1.4 per cent in the ACT. Canberra prices were still up 3per cent this year and 10.6 per cent on 12 months ago.

Rismark International managing director Christopher Joye said higher interest rates had prompted people to lower their price-growth expectations, as shown in this week's NAB survey. That survey found expectations for house price rises over the next year had dropped from 5.2per cent in the previous report to 1.4per cent nationally, and from 5.1per cent to 2.9per cent in the ACT.

It also comes after Australian Property Monitor figures published earlier this week showed price growth of 2.4per cent in the past quarter, compared with a quarterly 0.1 per cent rise according to RP-Data and Rismark.

Real Estate Institute of the ACT president Michael Wellsmore preferred the larger increase, saying that although the Canberra market was a little quiet, because of winter and the federal election, there were still strong inquiry rates and an undersupply of stock.

For more on this story, see the print edition of today's Canberra Times.