Strong buyer demand and fewer listings have pushed home prices to record highs in June, amid expectations of more interest rate cuts.
Data from PropTrack showed national home prices climbed 0.4 per cent last month and were up 4.6 per cent over the year, with the median cost of a capital city home now sitting at $923,000.
The average home is now $40,000 costlier than a year earlier.
Adelaide, up 0.6 per cent, posted the strongest monthly rise, followed by Sydney and Hobart, which both recorded 0.5 per cent gains.
Perth, Melbourne, Brisbane and Canberra prices rose 0.3 per cent, while Darwin grew 0.2 per cent.
Regional markets lifted 0.3 per cent, according to the data, which pointed to affordability and lifestyle appeal.
PropTrack said the market was gathering pace amid renewed buyer confidence, which was boosted by falling interest rates and expectations of another rate cut in July.
"However, the upturn remains measured as affordability constraints keep the pace of growth in check," it said.
The company said interest rate cuts in coming months would ease borrowing costs and add to housing demand, pushing prices higher.
"In addition, population growth and limited new supply are also placing upward pressure on prices, especially at the more affordable end of the market," PropTrack said.
"With interest rates moving lower, these factors are likely to sustain price growth over the second half of 2025."
Monthly data from property research firm Cotality, also released on Tuesday, backed the trends, showing housing values rose by 0.6 per cent in June.
It pointed to supply-side factors as a large contributor, saying the current housing rebound was occurring against a backdrop of relatively low home sales.
"Advertised supply is scarce, creating a more balanced market for buyers and sellers," Cotality's research director Tim Lawless said.
Many economists predict the Reserve Bank will cut the official cash rate at its July meeting after last trimming it in May by 25 basis points to 3.85 per cent.
