‘This top end recovery has been completed in most capitals, with median house prices surpassing pre-global financial crisis highs for the first time in the December quarter in Sydney, Brisbane, Adelaide and Perth,’ he added.Bell said the extent of last year’’ median house price growth had come as a surprise as no one foresaw the economic recovery being so strong and that fueled the top end of the market. The fact that the December quarter was as strong as the three months earlier was also surprising. ‘The December quarter was a surprise. There is an indication that not only was there a general price rise, but the more expensive properties were selling as well,’ he said.

These figures should come as no surprise. With historically low interest rates and improving job prospects the market was always set to rebound quickly.

The question now is what impact sharply rising interest rates will have on the market.