Q2 09 is becoming a bit of a buzz word around town. It's shorthand for summer 2009, when property pundits expect the Dublin property market to liven up again. That seems a long way away - but the reality is that the Dublin market has hit stalemate, stuck in a rut between sellers who can't believe that the value of their property has dropped, and buyers who are waiting for a bargain.

There is very little real activity going on, and though estate agents say that business is picking up, it's mostly with householders who are thinking of selling, rather than with clients who are thinking of buying. Meanwhile, building activity has clearly slowed down with large sites barely ticking over.

Most of the city's housebuilders are playing a wait and see game at the moment - even those with schemes of apartments and houses that are built, finished and ready to sell. They don't want to rush to the market with discounted properties, but if they ask too much, the stock just won't sell.

In the second-hand market, vendors are still looking longingly back at last year's prices in their neighbourhood, but estate agents are getting tough, and telling them that if they want to sell, they have to be realistic. Some vendors are deciding to postpone selling altogether, which eventually could lead to an undersupply and a rise in prices - but that may not be next year.

However it's not all bad news. First-time buyers are out there, looking to buy, it's just that they are taking a lot longer to make up their minds. Where once they would have viewed a property once or twice before putting down a deposit, now they are making several visits to a site, and bringing family and friends along to have a look.

With rental levels extremely strong, investors are still shopping for property too, though they are looking for a cast-iron deal in the form of a good discount. Housebuilders who are prepared to play ball with them by offering deals on multiple units will do well. There is plenty of stock to sell, and first-time buyers too will be able to haggle, that's if their bank allows them to go forth and buy. The fact that interest rates may not now go up in September could be seen as a potential boost to the market, were it not for the general outlook that things might have to get worse before they get better.