Estimates of a very modest rise of between 3%-5% for the coming year, plus a greater amount of housing now on the market, have prompted more sensational headlines in the past week . . . this time suggesting that the property 'boom' is over.

Most commentators agree that what has actually happened is a return to normality after the over-inflated prices of last spring followed by the empty auction rooms of autumn.

It's hardly surprising that a return to normal activity is being seen as a crash. But the market was definitely parked from September until the budget, where anticipation of a change in stamp duty rates proved unfounded.

As a result, this January is radically different to that of a year ago because there is much more property for sale.

One leading agent says that in early January 2006, there were 19 second-hand homes on their books; this January, that figure is 70. And this should be good news for buyers.

"Four out of every five buyers in the chain are trading-up, therefore predictions of a drop in house-price inflation for the year will be welcome, " says Declan Cassidy, managing director of Gunne Residential. "The only categories who really benefitted from last year's price surge were investors or those trading down.

"And the reason for the high prices achieved during the first five months of last year was down to a shortage of supply. There is much more stock going into 2007, but the thing to remember is that vendors are still getting the prices achieved last May . . . and those were very good prices indeed."

The suggested modest price rise for 2007 is based on statistics currently reflected in many leading agencies' yearly reports.

But the resulting predictions are only indicators of what might happen. Dublin house auctions are just as likely to be taken as the key indicator of the health, and confidence, of the second-hand market overall.

Given last autumn's empty auction rooms, will fewer vendors opt for this method of sale in 2007? "I hope people will be more cautious about presenting their house for auction this year, " says Simon Ensor, director of auctions for Sherry FitzGerald. "We will revert back to the situation of two to three years ago when most of the properties coming to auction were the typical period house in a prime location and with a good garden.

What has happened more recently is that some of the properties presented should never have been brought to auction in the first place."

An example of an unsuitable property? "It's really to do with the profile. Where a selling price is predictable, say a 1950s' house in a mature estate and where other similar properties have recently sold, in that instance there is no need to go for the additional expense . . . and risk . . . of an auction."

Many agents experienced a busier December selling period, post-budget, and again this will have an impact on activity in the coming months.

"We witnessed quite substantial activity until late December, particularly with properties previously withdrawn at auction being sold under private treaty, " says John O'Sullivan, residential director with Lisney. "The evidence was there as you drove around the city . . . the 'For Sale' signs that had been up for months were suddenly covered with a 'Sold' banner."

For vendors fearful that their property will prove more difficult to sell this spring, it's true that it may take a little longer to close the deal given the calmer dynamic now emerging. But it appears that the cautious buyers of last autumn are now back in full force, says Declan Cassidy.

"Even with increased supply compared to early 2006, there are still going to be more people buying homes, than there are properties available."