SYDNEY (Reuters – Australian home values rose in April despite the fact that more heat was coming from the Sydney and Melbourne markets. The smaller cities and regions were resilient to rising mortgage rates.

CoreLogic released Monday’s figures showing that prices rose 0.3% from March to April in combined capital cities. Sydney fell 0.2% in April, while Melbourne and Melbourne remained steady.

Brisbane fared again much better, with a 1.7% increase. Perth and Adelaide both rose 1.1%.

The value of the region rose 1.4% and 24% respectively in April. This was due to a shift towards country living and more space. Prices rose by 0.6% nationally in April to rise 16.7% year-over-year.

CoreLogic research director Tim Lawless said that a rebound in migration rates could partly explain the renewed exuberance. He also mentioned persistently low stock levels, strong economic conditions, and low advertised stocks.

Market had its best year in 2021, with notional values of Australia’s 10,8 million properties rising by A$2 Trillion ($1.42 TILLION) to A$9.9 TRILLION.

While the boom brought wealth to households and consumers, it also raised concerns over affordability. Federal election results are due May 21.

More headwinds face the market as the Reserve Bank of Australia, (RBA) widely expects to increase interest rates for first time in a decade. It may do so as soon as its May policy session on Tuesday.

While rates are at an emergency low of 0.1%, financial markets predict that they will rise to 2.5% before the end of this year.

($1 = 1.4130 Australian dollars)