Nationally, house prices grew 1.8 per cent during the first month of the year, translating to an 11.8 per cent jump over the past 12 months, according to residential researcher RP Data-Rismark's home value index.

In Sydney, values increased 1.7 per cent to a median price of $494,500, Melbourne rose 4.3 per cent to $455,000, Brisbane 1.8 per cent to $440,000, Adelaide 3.2 per cent to $379,600, while Perth prices fell 0.6 per cent to $472,500.

Prices continued rising despite Reserve Bank rate rises in October, November and December, and additional increases from the banks that, combined, have lifted the average mortgage rate from 5.8 per cent to 6.65 per cent.

The latest figures come ahead of next week's Reserve Bank board meeting, with economists expecting interest rates to increase up to one percentage point this year.

RP Data noted price rises in December were lower, suggesting the pace of price growth was easing.

However, RP Data's head of research, Tim Lawless, said there was confidence in the housing market. "Buyers are for the time being outweighing sellers and new supply is being quickly consumed," Mr Lawless said.

"Auction volumes are higher than at the same time last year and the national weighted clearance rate last week was a very healthy 73 per cent."

Rising house prices have pushed down the return for investors, with the gross rental yield for houses nationally falling from 4.7 per cent in January last year to 4.2 per cent this year.

The rental yield for apartments dropped from 5.3 per cent to 4.9 per cent.

"With rental demand likely to be higher during 2010 due to continuing strong migration and fewer first-home buyers, we anticipate that rents, and consequently yields, will improve over the year," Mr Lawless said.

Source: news.com.au