The median Australian property climbed to $857,280 in September, a jump of 0.8 per cent, property analytics firm Cotality reported in its monthly home value index on Wednesday.
Every capital city and the combined regional areas gained over the month, the quarter and the past year, in a sign falling mortgage rates were fuelling a broad-based surge in demand, Cotality research director Tim Lawless said.
This is interacting with a severe lack of advertised supply across capital cities.
"Listings are just crazy low, to be technical, tracking about 20 per cent below average for this time of the year," Mr Lawless told AAP.
Clearance rates have been holding up above 70 per cent and time on the market is also coming down.
"At a time when we're clearly seeing buyer demand is lifting to above-average levels, we're seeing available supply is really tight, and it just creates urgency."
Dwelling approval figures released by the Australian Bureau of Statistics on Tuesday provided little hope that the supply problem was on the road to being resolved.
The number of new homes green-lit for construction fell six per cent to 14,744 in August, driven by an 8.1 per cent fall in apartments.
"The longer we see new dwelling construction remaining lower than what it needs to be, then absolutely, the medium- to long-term trend in supply is looking grim," Mr Lawless said.
On the other side of the equation, demand was also expected to continue fuelling price growth.
While population growth has fallen from its peak following the relaxation of pandemic travel restrictions, migration numbers bounced back in the March quarter, Mr Lawless said.
Additionally, the government's expanded first home buyer guarantee scheme, which will give eligible Australians access to five per cent home deposits backed by the taxpayer, comes into effect on Wednesday.
That will bring forward purchasing decisions for many first home buyers who will be newly able to vault over the deposit hurdle, although the impact on prices might be short-lived.
"If you look at Sydney, about half the suburbs of Sydney metropolitan area have a median value at or below the $1.5 million price cap," Mr Lawless said.
The more desirable areas, especially within the 20km ring with detached housing stock, would quickly exceed the threshold, he said.
"Which means that those that are able to take advantage of the deposit guarantee in the first month or so will probably be in the best position."
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