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House prices in Northern Ireland are still falling and the market is the weakest of any in the UK, a new survey has suggested.

The Nationwide building society index is based on the price agreed, after a survey, by its mortgage customers.

It found that prices fell by 5.7% in the second quarter of 2010, compared to a 1% fall in the first quarter.

Northern Ireland was the only UK region to see a fall in prices in the second quarter.

On an annual basis, prices were down 5.2% - a slight deterioration from the 3% year-on-year fall in the first quarter.

Nationwide's chief economist Martin Gahbauer noted that unemployment has continued to rise in Northern Ireland and is the joint highest across the building society's house price regions.

The survey suggests the average price of a house in Northern Ireland is now £128,846.

It also suggests average prices for four regions within Northern Ireland:

• City of Belfast - £191,536
• Northern Ireland (North East) - £145,905
• Northern Ireland (South East) - £160,423
• Northern Ireland (West) - £114,592

The finding are broadly in line with other recent house price surveys.

Northern Ireland experienced a house price bubble in the first half of this decade but since about 2007 prices have plunged.

Keith Mitchell, Senior Partner with Templeton Robinson said he was not surprised by the trend.
"Like many of these reports the statistics are historical."
“Overall the market is continuing to realign after one of the most tumultuous periods in living memory where prices rocketed 50% in two years.  It is only natural that, given NI’s unique experience in this regard, we will take longer than other UK regions to get back to normality.
“While there are areas in NI which are continuing to see price reductions there are others where prices have stabilised or, indeed, risen a little.  
“In the last quarter at Templeton Robinson we have seen the numbers of sales increase and prices overall stabilising.
“We are now seeing a slow and steady return to a normal market where people move for lifestyle reasons and not for short-term financial returns.  This is how the market was pre the boom of 2006-2008 and how it is likely to be as we go forward. Depending on who you are 2006-2008 was either a dream or a nightmare.
“We anticipate it could take 2-3 years for the entire market to settle so we get a consistent picture. In the meantime, as vendors continue to realign their price expectations there are good deals to be had for those with access to bank funding.”