National house prices rose 0.7 per cent in June after a 2.1 per cent climb in May, according to Residex data.

This figure is just 0.5 per cent down from the peak in May 2008 and with no stabilisation in sight, said Residex senior economist Matthew Hassan.

Units have outperformed houses with an overall increase in the year to June of 3.4 per cent, and with Sydney and Melbourne ahead in the stakes showing increases of 11.4 per cent and 11.5 per cent respectively.

Hassan said this return to price growth would only add momentum to the upturn, which now appeared to be attracting more interest from upgraders and investors