Just-released figures from Residex show the third quarter of 2008 was one of the worst on record for the 2680 postcode, with prices going backwards on the previous quarter.

And in a prediction which has local agents fuming, the report warned the city was headed for “negative growth” over the next five years.

Elder’s Griffith sales consultant Jeanette Cunial said while the market was in a parlous state, dropping interest rates and a boost to the first home owner’s grant had added a host of new players into the picture.

“Speaking to a lot of agents who have been in the game for years, they agree the September quarter was one of the worst in our history,” Ms Cunial said.

“But I think we’re through the worst and certainly things have seemed much more positive over the last six weeks.

“People are still a bit cautious because of the world economic climate but it’s certainly improved.

“Perhaps we will have minimal growth over the next five (years) but I don’t think we’ll have negative growth.”

She said there was a glut of properties between $200,000 and $280,000 in Griffith, attracting plenty of interest from first home buyers.

The drop in the median house price in the September quarter was likely due to a dip in prices at the top end of the market, Ms Cunial said.

For those on the frontline, like local builder Derry Jasprizza, the signs of a property slump are hard to miss.

“It has slowed right down, especially in the quoting department, and I don’t think I’ve seen it this bad in the 44 years I’ve been a builder,” Mr Jasprizza said. “Even the renovation side has cut back and I know of a couple of the smaller builders that are really struggling for business.”

Mr Jasprizza said while the stock market crash played its part in the slowdown, factors much closer to home were the main contributors.

“In the past, people have never been afraid to invest locally because the economy has been so good that they knew they would get an income,” he said.

“But now there’s no water, people are going to stop spending and putting their money away.”