[SYDNEY] Home prices across Australia's major cities rose 1.2 per cent in January, from the previous month, extending a strong run that has boosted household wealth and confidence.

Figures from property consultant RPData-Rismark showed that overall dwelling prices were up 9.8 per cent compared to January last year, led by a 13.4 per cent jump in Sydney. Prices in Melbourne followed with a gain of 11.9 per cent while Perth saw an increase of 6.9 per cent.

Home values were now 4.8 per cent higher than their previous peak in October 2010.