Interest rate cuts have helped drive house values to record highs in almost every capital city across the country as Reserve Bank governor Michele Bullock warns it could take years to build enough new homes to meet strong demand.

As the RBA on Tuesday held interest rates steady, with signs it may only deliver one more rate cut over the next six months, data from Cotality revealed dwelling values rose 0.8 per cent in September or the equivalent of $18,215 on a median-priced home.

In Sydney alone, house values increased 0.9 per cent to a record high of $1.55 million, up 5.5 per cent since the start of the year. In Melbourne, values rose 0.5 per cent to $953,454, an increase of 2.5 per cent since January.

In Brisbane, house values rose 1.1 per cent to be up 6.9 per cent this year, while Pe

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