The June quarter report from Australian Property Monitors (APM) shows a rise of almost 2.5 per cent in housing prices nationwide with affordable suburbs leading the growth.
Melbourne had the largest quarterly increase of 4.4 per cent for houses and 3.8 per cent for units.
APM economist Matthew Bell says the results are surprising as many people had suspected the market was cooling down after six interest rate rises.
Mr. Bell says the lower end of the market out-performed the top end.
"The one big change we've had in this quarter is that previously where it's been the more expensive suburbs - the more expensive properties that have been leading the price growth, for the first time in over a year it's been the more affordable suburbs - the less expensive suburbs that have recorded the better price growth," Mr. Bell said.