Australian house prices are rising at their fastest rate in nearly four years, as buyers rush to auctions and owners put off selling amid expectations for a further upswing.

Capital city house values have sustained their longest continuous stretch of growth in a decade with a median increase of $35,000 in the three months to September, new data from Domain shows.

The median price rose $26,000 the previous quarter. Two in three Australians expect prices will rise further in the coming year, NAB research on Wednesday found, with analysts forecasting increases between $50,000 and $100,000.

Brisbane has overtaken Canberra as the second-most expensive house market, after Sydney, with median prices rising nearly $40,000 to hit $1.1m, over the three months to September.

Three interest rate

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