The average house price in Aberdeen in the fourth quarter of last year fell by 4% to £199,589.
Overall, however, the average price rose by 26% to £202,479 over the year.
By comparison, the Scottish average price increased from £141,435 to £144,897 over the quarter but the rise over the year was only 15% to £141,229.
In UK the average went up by 9% from 2006 to £196,478 and this is the first time since 1999 that the Aberdeen housing market area average price has overtaken the UK figure.
The latest research, released by Aberdeen City Council and using statistics from the Aberdeen Solicitors' Property Centre, show that 8,594 properties were sold through in 2007, 3342 more than the previous year.
"The figures show that the increasing number of sales each year has continued,"said John MacRae, chairman of ASPC.
2007 saw an important change in respect that financial institutions have suffered a setback due to the credit crunch.
This has led to significant changes in the attitude of lenders to mortgage lending.
"Such a transition will be bound to have some effect on even the most buoyant of markets, and Aberdeen will not be wholly immune to this.
"The current situation for the local housing market is not, in my view, a pessimistic one.
"The majority of the evidence is that the local market continues to be very busy with strong demand.
"The lending criteria changes may lead to stabilisation in our market, which may be no bad thing.
"The drop in the average price in the last quarter will be due, at least in part, to seasonal factors. Traditionally, the last quarter does tend to show a slowing down and it would be premature to read too much into the drop in average price.
"The first half of 2008 will give a clearer indication as to how the market is heading."
The figures also show that the affordability ratio of houses in the area (average price to average earnings) has more than doubled in a decade.
Houses in Aberdeen are now less affordable than the Scottish average but more affordable than the UK average.
In 1997 the ratio for Aberdeen was 3.72 and is now 7.83 (making the average house price almost eight times the average earnings). The corresponding rises for Scotland are 3.38 to 6.12 and for the UK 3.58 to 9.19.
The average price of a detached house in Aberdeen's west end over last year was £675,450.
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