According to the latest University of Ulster Quarterly House Price Index, the average price of a house in Derry and Strabane is now £218,979 - that'sl 21.1% higher than last year.

The report also reveales that, in Limavady, the average prices of a house is £264,055 - that's a small annual increase of 3.1%.

However, according to economist Alan Bridle, Head of Research at Bank of Ireland Northern Ireland, the local housing market is "technically in recession" for the first time since the early 1990s. In Northern Ireland the number of sales dramatically declined in the first quarter of the year.

Mr Bridle said: "The overwhelming theme of this survey is the lack of sales and the repercussions for the house building industry but, on an overall basis, the decline in average prices in the quarter has been relatively modest, contrary to some speculation.

"Price trends are not uniform across the region or property types, with significant discounting in some areas partially offset by increases and stickiness in others. As an observation we may have something of a stalemate, with vendors looking to sell at 2007 prices and potential buyers deferring purchase in anticipation of lower prices and easier access to credit later in 2008 or 2009. 

"It is not certain how this will play out over the coming quarters but the risks to prices remain on the downside."

Between January and March, the University recorded 896 transactions from almost 120 estate agencies, compared with 2,120 in the same period the previous year, a drop of almost 60%. The average price of a house in Northern Ireland, at £230,908, was still 7.5% higher than a year previously but prices in the first quarter fell by 4.6% compared with the last quarter of 2007 demonstrating the continuing correction in the housing market.