House prices in Byron Bay have plummeted by 15 per cent in the past 12 months and further falls are on the way as rapid interest rate rises and weak sentiment hit the more expensive regional markets harder, data from CoreLogic shows.

Prices in popular lifestyle markets such as Ballina and Tweed in regional NSW and in Baw Baw in regional Victoria also fell sharply in the past year, dropping by 9.1 per cent, 4.2 per cent and 4.8 per cent respectively.