Experts have said rising interest rates and inflation have caused house sales across the country to fall.
According to the Housing Industry Association (HIA), new home sales in Queensland fell by 15.5 per cent in the month of July.
This drop coincided with house prices falling at the fastest rate since the global financial crisis.
In July, median house prices in the Redlands region fell by 1.4 per cent while Logan and Beaudesert prices remained steady with no monthly change. Nationally, prices fell by 1.3 per cent in July, marking the third consecutive month of negative growth.
A survey by Australian financial broker Savvy found that 77 per cent of mortgage holders have experienced some form of rate rise, with 25.7 per cent of those seeing their repayments rise above 5 per cent.
Real estate agents have said rising inflation and higher interest rates have put pressure on household budgets and affected consumer confidence.
"Buyer confidence is really the most significant change we have seen in the market," said real estate agent at RE/MAX Bayside Hayley Van De Ven.
"Buyers should be confident in investing in the market right now as Queensland's economy is strong and continuing to grow, much like the Redlands as a micro market," Ms Van De Ven said.
Rate rises continue to bite
Economists have pointed to recent interest rate increases and rising inflation to explain the fall in house sales.
Last week, the Reserve Bank of Australia (RBA) also recently lifted the cash rate by 50 basis points to 1.85 per cent, it's highest level in six years. Last week's increase meant the cash rate has risen 175 basis points since May.
HIA Chief Economist Tim Reardon said the decline in house sales throughout July highlighted the impact of recent increases to the cash rate.
"The full impact of the rate increases will continue to flow through as an adverse impact on the sale of new homes for at least the next few months," he said.
"This slowdown is consistent with reports from builders over recent months which have seen the number of people visiting display sites and making enquiries slowing since the first increase in the cash rate in May."
According to property analytics firm CoreLogic, total listings have also fallen, with Greater Brisbane recording advertised supply levels that are more than 30 per cent below the five-year average.
CoreLogic Research Director Tim Lawless said cash rate rises meant the RBA were attempting to fight rising inflation.
"[The RBA's] rate hike, which is likely to flow through in its entirety to variable mortgage rates within a matter of days, paints a weaker picture for the housing sector," he said.
"Lower house prices and higher mortgage repayments may help to contain inflation through wealth effects, and limiting household consumption."
