The steam is going out of the housing market with prices in Queensland expected to drop by up to five-per cent this year and 10 per cent the next.

The housing market slowdown is being impacted by rising interest rates, among other factors.

Chief of research and economics at Domain, Nicola Powell, says it can be confusing to understand the trends in the market.

“I think it’s a really changing market and that is the element that is confusing for people,” she told Neil Breen on Brisbane Live.

She says there is a slowdown in growth in Brisbane, but only marginally.

“What we are seeing is steam coming out of the overall momentum of the housing market,” she said.

“We are seeing a bit more rebalancing of supply and demand.”

What it means is “choice has improved” for people buying in Brisbane in recent weeks, and competition isn’t as fierce as it was, she said.

Press PLAY below to hear more about the breakdown of the data and what it means