Published Tuesday, 29 May 2012
House prices in Northern Ireland are continuing to fall. (© Pacemaker)
Fewer than 1,000 properties were sold during the start of this year, which the report states is a reflection of rising bills and concerns about job security.
The average house price for the first quarter of the first quarter was £134,560, which represents an annual decline of 10%.
Alan Bridle. UK economist at the Bank of Ireland UK, said: "There are pockets of improvement in this survey, with the average prices now better aligned to local household incomes.
"However, given the wider economic backdrop and the availability of discounted properties, the short-term risk is that the market will overshoot on the downside, as it did on the upside."
Around a third of all sales have been new build homes, and the University of Ulster Quarterly House Price Index also highlighted the availability of affordable properties, with 35% of properties in the survey of 115 estate agents sold at or below £100,000 and more than 70% sold for £150,000 or less.
Housing Executive head of research Joe Frey said: "This year's review of Northern Ireland's housing market confirms that it will be another very challenging year, not only for first-time buyers but also for many existing home owners.
"It is important that government and the private sector work together to come up with strategies to address the challenges."