Sydney, which led the fall in home prices last year as the Reserve Bank began lifting its cash rate, will also power the rebound. By the end of June next year, the city’s houses are forecast to be 6%-9% higher than at the end of last month, lifting the median price to a record of just over $1.6m.

Spring listings were 11% lower than the five-year average across the major cities. “This signals rising competition between buyers helping to stabilise or improve prices in certain markets,” the report said.

However, a net-migration surge that added 400,000 people this fiscal year and will add another 300,000-plus next year, helped to stem and then reversed the slide in values.