Cotality’s Home Value Index showed prices were up 0.5 per cent nationwide in May to lift the median cost up to $831,288.

Darwin saw the largest increase, with a rise of 1.6 percent. Perth followed, with property prices climbing 0.7 percent for the month and an impressive 13.3 percent over the past year. Brisbane and Hobart both observed a 0.6 percent rise, while Sydney experienced a 0.5 percent increase.

Cotality indicated that the surge in prices was primarily driven by interest rates. The two rate cuts made by the RBA in February and May, along with the prevailing market belief that additional rate adjustments are likely before the year’s end, have been significant factors.

“The continued momentum we’re seeing across almost all markets is no doubt being fuelled by rate cuts – both those that have already happened, but also potential cuts in the coming months,” research director Tim Lawless said.

“With interest rates falling again in May, we are likely to see a further positive influence flowing through to housing values in June and through the rest of the year.”

Despite the monthly rise, a downturn in prices in late 2024 means national prices were up 3.3 per cent for the last 12 months – the most modest increase since August 2023 – while home values in Melbourne (-1.2 per cent) and Canberra (-0.7 per cent) have dipped in the last year.

Meanwhile, almost 3000 auctions were held over the weekend, making it the second-busiest of the year and the busiest since Easter as sellers looked to cash in on the greater borrowing power the RBA’s latest rate cut provided buyers.