The impending Federal Election and speculation about tax changes did not stop housing prices rising in most capital cities in May, according to figures from one source.


The average capital city home value rose 1.6% in May, according to CoreLogic RP Data.


This took the annual growth rate (the average across the eight capital cities) to 10%, with Sydney and Melbourne both up 13% in annual terms. Median dwelling prices are $782,000 in Sydney and $590,000 in Melbourne.


The strongest monthly growth rate in May was recorded in Sydney at 3.1%, followed by Canberra at 2.5%, Hobart at 2.2% and Melbourne at 1.6%, although we urge caution in placing too much emphasis on monthly changes, which are usually erratic.


“It looks as if the upcoming election and debate around taxation policy hasn’t been enough to dampen the renewed bounce in home values,” CoreLogic head of research Tim Lawless says.