Australia's home prices rose at a robust pace in April, driven by price gains in more affordable segments of the market, as a chronic lack of supply trumped concerns about interest rates and the elevated costs of living.

Figures from property consultant CoreLogic out on Wednesday showed prices nationally climbed by 0.6% in April, unchanged from the pace of gains in both February and March. They already jumped 8.1% in 2023 to reclaim the previous peak.

For April, price gains were driven by a 2.0% jump in Perth and 1.3% increase in Adelaide, both more affordable markets. Prices in Sydney rose 0.4% while Melbourne dipped 0.1%.

CoreLogoic noted almost every capital city is recording stronger growth across the lower value range of the market.

"The persistent rise in housing values, despite an array of downside factors that would normally act to push prices lower, can be drawn back to the insufficient supply of housing relative to demand," said CoreLogic.

Even though sticky inflation in the country has raised fears that interest rates will stay high for longer, "housing values are likely to be propped up by the mismatch between supply and demand, a situation that doesn't look like it will change in the near future", said CoreLogic.

The Reserve Bank of Australia has raised interest rates by a whopping 425 basis points since May 2022 to contain sky high inflation, but the tightening has done little to curb exuberance in the housing market.

That may suggest financial conditions are not as tight as desired, with the RBA sitting pat for three straight meetings on rates now. Markets are wagering on a small chance, 30%, for another rate rise by September. (Reporting by Stella Qiu in Sydney; Editing by Michael Perry)