House prices in Greater Brisbane have fallen for the first time in two years, dropping 0.8 per cent in July while nationally, prices have fallen at the fastest rate since the global financial crisis.
In the Redlands region, the median house price fell by 1.4 per cent over the past month almost mirroring the 1.3 per cent national drop, while Logan and Beaudesert prices remained steady with no monthly change.
Nationally, house prices have continued their downward trend, marking three consecutive months of negative growth, having fallen 2 per cent since April.
It is the fastest rate at which prices have fallen since the global financial crisis and comparable to the sharp downswing of the early 1908s according to property analytics firm CoreLogic.
Real estate agent at RE/MAX Bayside Hayley Van De Ven said buyer confidence was the most significant change affecting the current market.
"Inflation and interest rate increases have got buyers scared," she said.
"My firm belief is that the current market is temporary, inflation looks to be slowing and I can't see current trends continuing for too much longer."
CoreLogic Research Director Tim Lawless said house prices are expected to worsen as interest rates continue to rise.
"The rate of growth in housing values was slowing well before interest rates started to rise, however, it's abundantly clear markets have weakened quite sharply since the first rate rise on May 5," he said.
"Due to record high levels of debt, indebted households are more sensitive to higher interest rates, as well as the additional downside impact from very high inflation on balance sheets and sentiment."
Mr Lawless also noted, however, that house prices had jumped dramatically from mid-2020 to when the market peaked in April this year.
In the past 12 months alone, house prices in the Redlands region have experienced dramatic growth with prices having risen by 24.9 per cent.
Beaudesert and Jimboomba have experienced even greater growth in the past 12 months with prices rising by 34.6 per cent and 32.5 per cent respectively, the highest and second highest growth in the country for that period.
"While national home sales are falling from record highs, they are still 9.2 per cent above the previous five-year average for this time of the year," Mr Lawless said.
"There is a good chance the number of properties sold in the second half of this year and into 2023 will continue to trend lower as higher interest rates, a more cautious lending environment and a reduction in household confidence continues to weigh on housing demand."
