Booming Australian house prices are approaching record highs, growing at their fastest rate since 2003

• Australian capital city house prices shot up 2.4% in the September quarter, according to the ABS – four times what was forecast.

• It marks sustained momentum in the Australian property market, with both Sydney and Melbourne prices rising 3.6% over the same period.

• The latest data indicates that property prices are quickly bouncing to near their 2017 peak.

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House prices in this country are still soaring and they show no sign of slowing down.

In the three months to September, house prices rose 2.4% across combined capital cities, led higher by a 3.6% jump in both Sydney and Melbourne, according to the latest ABS data.

The numbers shred expectations, with forecasts pointing to capital city growth of just 0.6% for the quarter. Comparing the numbers to its own figures, property research house CoreLogic noted the bounce is remarkable.

"Post-September the CoreLogic series has gathered further momentum with the national series recording the fastest growth since 2003 in November," head of research Tim Lawless tweeted.

https://twitter.com/timlawless/status/1204201848397123584

The bounce has helped erode the losses sustained in 2018 and early 2019 – values are just 3.7% lower than they were just 12 months ago across capitals. If current momentum persists, house prices could roar back to record highs within six months.

READ MORE: If Australian property prices keep growing at this rate, they'll be breaking all-time highs by the start of next year

Sydney and Melbourne, Australia's largest real estate markets, are disproportionately leading the trend. Hobart came in third for the quarter, rising 1.3% with Brisbane values lifting 0.7%, according to the ABS. Meanwhile, Perth and Adelaide both declined.

It comes as auction clearance rates remain above 70%, again pushed higher by Australia's largest two cities. Last weekend, the busiest of the year, more than 74% of homes sold at some 3,206 auctions, according to property research house CoreLogic.

With rates above 65% signalling moderate price growth, according to Domain economist Trent Wiltshire, it's no wonder prices are shooting higher.

As pay rises remain elusive, it's doing little for affordability, as house price growth outstrip wages.

https://twitter.com/CallamPickering/status/1204206658106187776

If the trend continues, housing affordability in Australia could plumb new lows before you know it.