While small in overall terms the Brisbane growth would represent boom time increases of almost 17 per cent if they were to carry on over a year.

However, many economists believe it is unsustainable with interest rates expecting to continue increasing.

CoreLogic said the rate of growth was accelerating across every capital. The national growth rate was 1.2 per cent and Ray White economist Nerida Conisbee said the timing of this recovery was moving even quicker than expected.

“Although house prices took a bit of a stumble in April, prices are back on the rise in May. Brisbane, Perth, Adelaide and Darwin are now above their 2022 peaks. All other cities are expected to follow over the next six months,” she said.

CoreLogic research director Tim Lawless said the increases were the result of low levels of available housing supply.

The shortage was an issue that was not going to be resolved quickly, Master Builders said.

Queensland would not meet the demand in new home construction for five years and dwelling approvals in the state have tanked.

Also, interest rates could be about to rise again following stronger-than-expected inflation data released this week. The Reserve Bank board will meet to decide next week.

However, auction clearance rates nationally were above 70 per cent and Westpac senior economist Matthew Hassan said the bank was a little wary about the upturn.

“It is an unusual situation, we have got by surprise at the start of the year when this resurgence came through,” he said.

“Affordability is still very stretched. For most buyers the rise in interest rates and the cost of finance has more than offset any improvements from lower prices.

“Higher prices are likely to see any owner-occupier demand nobbled quite quickly.”

Lawless said advertised listings trended lower through May with roughly 1800 fewer capital city homes advertised for sale relative to the end of April. Inventory levels are -15.3 per cent lower than they were at the same time last year and -24.4 per cent below the previous five-year average for this time of year.

“With such a short supply of available housing stock, buyers are becoming more competitive and there’s an element of FOMO creeping into the market. Amid increased competition, auction clearance rates have trended higher, holding at 70% or above over the past three weeks. For private treaty sales, homes are selling faster and with less vendor discounting,” he said.

Brisbane’s home values were still down 9.4 per cent from the peak in June, 2022 and regional Queensland was down 5.4 per cent. However, prices in Brisbane rose 41 per cent during the Covid boom. The rest of Queensland jumped 34 per cent over the same period.

The median value in Brisbane is $713, 939, just behind Melbourne’s $755,871. Sydney still tops the nation with a median value of $1.05 million.