City home prices surge 2.3pc in March

Australia's capital city home prices surged 2.3 per cent in March, raising speculation of earlier interest rate rises.

RP Data - Rismark's Home Value Index shows capital city prices are now up 10.6 per cent over the past year, with double digit gains in Sydney and Melbourne leading the rise.

All capitals recorded home price rises last month, but the other cities have annual gains less than half those of Melbourne and a third of the 15.6 per cent of the surge seen in Sydney over the past 12 months.

RP Data analysts warn that, if home prices keep rising at this pace, the Reserve Bank may be forced to start raising interest rates sooner than currently expected.

more: City home prices surge 2.3pc in March

Australia's capital city home prices surged 2.3 per cent in March, raising speculation of earlier interest rate rises.

RP Data - Rismark's Home Value Index shows capital city prices are now up 10.6 per cent over the past year, with double digit gains in Sydney and Melbourne leading the rise.

All capitals recorded home price rises last month, but the other cities have annual gains less than half those of Melbourne and a third of the 15.6 per cent of the surge seen in Sydney over the past 12 months.

RP Data analysts warn that, if home prices keep rising at this pace, the Reserve Bank may be forced to start raising interest rates sooner than currently expected.