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The survey showed prices had dropped by more than 28% over the full course of the year.
Produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, the report confirmed the continuing low volume of house sales, with 704 transactions recorded in October, November and December.
However, this figure was slightly up on the previous quarter's report of 670.
It showed the overall average price of a house in the final quarter of 2008 was £168,185 - a drop of 16.6% on the third quarter.
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According to the authors of the report, Alastair Adair, Stanley McGreal and Louise Brown, the current survey confirmed 2008 as the worst year for the Northern Ireland housing market since the start of the 1980s.
Alan Bridle, Head of Research at Bank of Ireland Northern Ireland, said there are both "clouds and silver linings" in this latest research.
"The new average price of under £170,000 is something we would have expected to see later this year. The overall market is now back at mid-2006 levels, but that is not bad news for everyone," he said.
"We may now be at the point for many where house buying is affordable and attractive again in the new ultra-low interest rate environment."
He suggested some estate agents and developers have indicated an increase in enquiries since the turn of the year.
While the survey showed the weighted rate of decline across the market was 28.2% over the year, some property types saw greater falls, with detached and semi-detached bungalows dropping the most.
The shift towards greater affordability saw 16% of properties in the latest survey selling below £100,000 and collectively more than half selling at or less than £150,000.
(PR/JM)
