As quickly as it came, it's gone.
The most rapid decline in home prices in recent history is now fully reversed, with national prices returning to their peak.
According to new data from PropTrack, the property market has recovered 2022's falls entirely after climbing 0.35 per cent month-on-month to hit pre-slump highs.
Nationally, prices are up 4.31 per cent this year, the report said.
Sydney prices sit just 0.03 per cent below the highs recorded in February 2022.
Prices in the NSW capital increased 0.48 per cent in September and are now up 7.43 per cent from lows struck in November 2022.
Despite a year of rate hikes from the Reserve Bank, rising inflation and a cost of living crunch, PropTrack's Eleanor Creagh said the spring selling season was well and truly "blooming".
Although there was an "uplift" in the number of properties coming to market, prices have again moved higher, Creagh said.
The rise in prices was driven by record levels of migrants entering the country, tight rental markets and a housing shortage, she said.
Unique Sydney $85 million waterfront home set to be one of city's priciest
Creagh said buyers in Sydney and Melbourne were enjoying improved choice because of the "sharp increase" in properties listed, but strong demand was boosting prices.
"Looking ahead, interest rates have likely peaked and population growth is rebounding strongly," she said.
"Together with a shortage of new home builds, prices are expected to rise.
"As we head further into spring, more markets are likely to reclaim 2022's fast falls to set new peaks."
Home prices in Brisbane have regained falls suffered in 2022 and were rising fast, the report said, jumping 0.39 per cent in September to hit a new high.
All capitals, except Darwin, saw prices rise in September.
Choice for buyers remains limited in Brisbane, Adelaide and Perth, "heightening competition," Creagh said.
The price bounce in Melbourne was lagging Sydney and Brisbane, but remained ahead of the recoveries in Hobart and Canberra.
The Reserve Bank will meet tomorrow, and all eyes are on new Governor Michele Bullock and whether she will decide to lift interest rates or hold at 4.10 per cent.
