The findings from the most recent University of Ulster House Price Index, produced in partnership with the Bank of Ireland, signal the end of the province's property price boom.

House prices here peaked last summer when the average home cost £250,000.

But a slowdown in the rates of growth and fewer house sales impacted on property values.

In the last quarter of 2007, the average house showed an increase of 26.4% on the same period in 2006. That compares with annual rates of capital appreciation of almost 40% in the third quarter and more than 50% in the second quarter.

House sales also fell by a third on the same period last year .

Economist Alan Bridle, head of research at Bank of Ireland, said the local housing market had "hit a brick wall" in the final months of 2007. And he added there was a possibility that the average price could fall by up to 10% over the next 12-months in 2008..

The reports authors Professors' Alastair Adair, Stanley McGreal and Mrs Louise Brown of the University of Ulster, agreed the survey showed a housing market in transition.

And it was the influx of new apartments last year which gave the local market a much-needed boost.

This meant a quarterly fall of 1.2% which would have been more except for the new developments. The apartment schemes accounted for 44% of transactions at the end of 2007.

And for the first time in several years most house types showed falls between the third and fourth quarter of 2007.

Average prices for the final quarter, however, were still up compared to the previous year.

In terms of location Lisburn is still the province's property hotspot with an average price of £285,153.

South Belfast remained the most desirable place to live in Belfast and the most expensive at £288,682 on average.