And the number of sales during the first quarter of this year were the lowest since figures were first reported.
In its quarterly residential property prices bulletin, the Policy Council said mix-adjusted average purchase price for local market properties in the first quarter was £445,923 - 3.5% lower than the previous quarter and 1.6% lower than the same quarter of 2014.
It is the first time that negative annual growth has been recorded since measuring mix-adjusted purchase prices.
There were just 116 Local Market transactions during the first quarter of 2015, 11.5% fewer transactions than in the same quarter of 2014.
