The average price of a house in Derry and Strabane now stands at £120,594.
The latest University of Ulster Quarterly House Price Index, produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, reveals that the Derry-Strabane price is nearly £17,000 below the average for Northern Ireland.
The survey also reveals that the cheapest place to buy a house in the North is North Belfast where the average price is £77,000.
The most expensive place to purchase a property is in South Belfast where the average price is £224,301.
The price index also discloses that, in Derry and Strabane, the overall average price level rose over the quarter by 7.9% to £120,594 due in large part to the improved performance of semi-detached houses.
In addition, over the year, semi-detached houses rose by 7.4% to £110,590 while terraced/townhouses were slightly up by 0.1% to £105,667.
Overall, according to the index, the number of house sales in Northern Ireland continued to show a rise in the final quarter of 2011 although prices were generally still falling, according to the most comprehensive residential property survey.
The latest index showed the number of transactions in the fourth quarter of 2011 – October, November and December - was 960 compared with 684 sales in the same quarter in 2010.