House prices in popular coastal towns such as Byron Bay have slumped by as much as $614,000, as higher interest rates make it tougher for sellers to hold on to their holiday homes and for hopeful buyers to qualify for a loan.

Home values in 27 coastal towns have plummeted by more than $200,000 from their pandemic highs two years ago, while 56 towns lost more than $100,000, analysis by CoreLogic shows.