According to CoreLogic data Australian home price momentum has started the year on a solid note with capital city dwelling prices up 0.7% month on month in January or 10.7% year on year. As has been the case for the last four years this remains dominated by Sydney and Melbourne where prices are up 1% MoM/16% YoY and 0.8% MoM/11.8% YoY respectively. Other cities are far more moderate although Hobart is looking stronger with prices up 1.4% MoM/7.8% YoY. Unit price increases have slowed in Melbourne to 2.8% YoY presumably reflecting supply increases but remain very strong in Sydney at 13.1% YoY.