The latest research from Lloyds TSB has shown the rate of decline has slowed however the average domestic property price fell by 2.3% in the three months to 31 January.
The average mix adjusted Scottish house price is now worth £158,820.
House price figures published in November showed a 4% fall which was the latest since records began 16 years ago.
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Year-on-year there has been a rise in house prices by 1.6% but the number of house sales are 48% lower compared to this time last year.
Properties in the north excluding Aberdeen seen a 6.1% annual rise, properties in the east saw slight rises after record falls last year and properties prices in the west prices have now fallen.
Professor Donald MacRae, chief economist, Lloyds TSB Scotland, said: "The Scottish housing market has responded to the economic slowdown with a reduction in transactions and in some cases price falls.
"The cost of borrowing has reduced for many mortgage holders with the latest fall in interest rates in early February.
"The Scottish housing market is adjusting to changing circumstances with reduced sales and in some cases lower prices rather than a precipitous collapse."
(GK/JM)
