Sydney housing market: Property prices grow at fastest rate in 17 years

Unprecedented buyer activity and low interest rates have seen Australian housing values grow at the fastest rate in 17 years.

Property researcher CoreLogic revealed Sydney dwelling prices rose 2.5 per cent in the past month to $895,933, which along with Hobart was the largest monthly increase of any Australian capital city.

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The bumper activity pushed the national home value index up 2.1 per cent in February in the largest monthly increase seen since August 2003. Buyers have been motivated by a mix the economy, low mortgage rates, government incentives, a limited supply of homes and a fear of…