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And according to the University of Ulster's House Price Report - published in conjunction with the Housing Executive and Bank of Ireland - there could be worse to come.
Figures for the third quarter of this year - stretching from July to September - show house purchases were down more than half compared to the same period in 2007.
Prices also plunged during the third quarter by around three percent, a total of 15% down year-on-year.
Economist have now predicted the average house price in Northern Ireland could nosedive from £203,775 to £175,000, by next year.
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The average home in the province now costs £203,775, a stark drop from peak prices of more than £250,000 last year.
Bungalows appear to be sustaining the most dramatic drop in values, with some wiping 30% off their price tags. Semi-detached bungalows also down by around 28%.
However, apartments, which comprised a third of recent sales, have seen prices climb by as much as 10%.
Alastair Adair, Stanley McGreal and Louise Brown, who compiled the new report, said the results illustrate the grip of the credit crunch one year in.
"The impact has been severe on the local housing market with prices down considerably.
"In addition, the volume of transactions has been eroded further, notably in the resale market where many sellers are adopting a wait and see approach," they said.
Bank of Ireland Economist Alan Bridle said: "Northern Ireland's journey to more affordable housing continues in terms of the ratio of house prices to earnings – a welcome development for many – but the price reductions to date have not been accompanied by an increase in market activity."
Mr Bridle suggested prices could continue to fall.
"We could see a decline towards £175,000 in the average house price during the first half of next year," he hinted.
(PR)
