But the drop does not reverse the longer-term trend, which has seen property prices in the area achieve 13.1% annual growth.
The average Fife house price in March was £166,962, Land Registry figures show – a 0.1% decrease on February.
Over the month, the picture was similar to that across Scotland, where prices remained static, and Fife underperformed compared to the 0.3% rise for the UK as a whole.
Over the last year, the average sale price of property in the region rose by £19,000 – putting the area 11th among Scotland’s 32 local authorities with price data for annual growth.
Owners of flats fared worst in March.
They dropped 0.6% in price, to £99,085 on average.
But over the last year, prices rose by 9%.
Detached properties in Fife were up 0.2% monthly; up 17.6% annually; £314,585 average
Semi-detached: up 0.3% monthly; up 14.2% annually; £176,060 average
Terraced: down 0.1% monthly; up 11.8% annually; £135,662 average
First-time buyers in Fife spent an average of £133,000 on their property – £14,000 more than a year ago..
By comparison, former owner-occupiers paid £200,000 on average in March – 50.8% more than first-time buyers.
Fife buyers paid 8% less than the average price in Scotland (£181,000) in March.
The most expensive properties in Scotland were in Edinburgh – £323,000 on average, and 1.9 times as much as more than in Fife.
Average property price in March
Annual growth to March
Best and worst annual growth in Scotland