SYDNEY, May 2 Reuters Australian home prices were still rising nationally in April even as more of the heat came out of the Sydney and Melbourne markets, with the smaller cities and regions proving resilient to the risk of higher mortgage rates.

Figures from property consultant CoreLogic out on Monday showed prices in the combined capital cities nudged up 0.3 in April from March, as Sydney dropped 0.2 for a second month and Melbourne held steady.

Brisbane again fared much better with a rise of 1.7, while Perth rose 1.1 and Adelaide 1.9.

Values in the regions climbed 1.4 in April, and 24 on the year, amid a shift to country living and greater space. Combined, prices nationally rose 0.6 in April, to be up 16.7 on the year.

A rebound in migration rates as state and international borders reopened could partially explain the renewed exuberance, along with persistently low advertised stock levels and strong economic conditions, said CoreLogic39;s research director, Tim Lawless.

The market had its strongest year ever in 2021 with the notional value of Australia39;s 10.8 million homes rising by A2 trillion 1.42 trillion to A9.9 trillion.

The boom was a windfall for household wealth and consumer spending power, but also caused concerns about affordability that are a hotbutton issue for Federal elections due on May 21.

The market faces more headwinds as the Reserve Bank of Australia RBA is widely expected to hike interest rates for the first time in a decade, perhaps as…