House prices leap $6000 a month

A TYPICAL Melbourne house now costs just under $500,000 after surging $6000 a month since December.

The rate of increase is the fastest in the nation, jumping 12.6 per cent in the first nine months of the year.

The latest RP Data-Rismark property index shows that while the median Melbourne price hit a low of $443,900 at the end of 2008, it began climbing in January, sailing past the previous high of $462,000 in April and reaching $499,800 in September.

Melbourne's 12.6 per cent increase in nine months headed Darwin's 11.5 per cent and Sydney's 9.4 per cent.

But Sydney, Darwin and Canberra remained the dearest cities, with median prices of $606,800, $522,100 and $519,300.

The RP Data index shows housing values in other capitals falling, with the median Brisbane price slipping 1.3 per cent in September,Adelaide falling 0.4 per cent and Perth declining 2.5 per cent.

Nationally, prices took a breather in September as the first home owners grant was wound down.

"The key question is whether September is just a temporary pause or whether it represents a more general cooling," Rismark head Christopher Joye said. "Only time will tell, but we are projecting materially lower rates of house price growth . . . as mortgage rates increase."

The RP Data-Rismark index typically moves before other indexes, and identified the 2009 recovery earlier than those by estate agents. It compares "like sales" with "like sales".

"The booming growth the others are reporting now may relate more to past than present conditions," Mr Joye said. "We see no evidence of prices accelerating."