Published Tuesday, 10 January 2012
Prices were first reported to have fallen in August 2007 and have been in negative territory every month since, according to The Royal Institution of Chartered Surveyors and Ulster Bank Housing Market Survey.
The downward trend is expected to continue into March and although the number of people buying houses was down at the end of last year, it is expected to rise again in 2012.
RICS Northern Ireland's Tom McClelland said wider debts throughout Europe and local spending cuts will affect the housing market.
"I expect the Northern Ireland housing market to continue to experience large variation, with some geographical areas and property types having significantly different experiences.
"I would also expect that those who price their houses in line with the realities of the market will continue to achieve sales. Recent auction results, for instance, show relatively low selling prices but relatively bullish activity," he added.
Derek Wilson, Head of Lending Products at Ulster Bank, said Co-Ownership was up in 2011.
"We ran a number of campaigns to stimulate demand across the marketplace, including reducing rates and removing arrangement fees for a period.
"As we enter 2012, we are once again actively promoting our range of mortgages and hope to further stimulate demand," he said.