Housing prices rose strongly in October after stalling in September according to early signs from the RP Data CoreLogic home value index.
In the first 29 days of October, prices in the mainland state capitals were up by an average of 1.2 per cent, after a tiny rise of just 0.1 per cent in September.
The smaller states continued to "underperform", according to RP Data's national research director Tim Lawless, but early indications are that both Sydney and Melbourne will rack up price gains of more than 1 per cent for the month.
"As we move into the third month of spring, the housing market remains relatively strong. However, despite the strong monthly result, the annual trend in capital gains has been moderating since a recent peak in April earlier this year," Mr Lawless said.
The final RP Data CoreLogic home price measures for the whole of October will be released on Monday.