Property prices in most of Australia’s capital cities are rising, meaning it may not be long before we see new record prices being set.

CoreLogic’s January national home value index saw prices go up by 0.9% for the first month of the year, which took the annual growth rate to 4.1% – the highest yearly growth seen since December 2017.

Sydney (1.1%) and Melbourne (1.2%) led the charge for the month, with other capital’s Hobart (0.9%) and Brisbane (0.5%) also seeing strong results.

Small increases of 0.1% were even seen in Perth and Darwin, where there have been long periods of price declines.

Believe it or not the growth seen in January was actually slower than we’ve seen in previous months, but the start of the year is generally a slow time for the property market.

Looking ahead low interest rates will continue to fuel price growth, as will the federal government’s First Home Loan Deposit Scheme, which has been popular with first time buyers.

How much growth can we expect?

Domain’s Property Price Forecasts for February 2020 has predicted that the combined capital city median house price will rise by 8%.

Sydney is tipped to grow the most with an increase of 10%, bringing its median price tag to a whopping $1.25 million.

Melbourne can also expect a sharp increase of 8% to a record new price of $970,000.

It’s not just Melbourne and Sydney that will get all the glory. Brisbane (8%) Perth (5%), Canberra (4%), Adelaide (3%) and Hobart (3%) are all predicted to have price increases this year.

So should you buy now?

The best time to buy is when you’re confident and ready to do so, but with interest rates low and prices still below their 2017 peak, it’s a good time to enter the market if you can.