Australian home values have risen for the 14th consecutive month, with a 0.6 per cent increase in March.

Despite high interest rates and cost-of-living pressures, demand for housing still exceeds supply.

Perth, Adelaide, and Brisbane experienced the most significant growth, while Melbourne saw flat growth with a negative quarterly trend.

The federal government's plan to build 1.2 million new homes in five years is lagging behind, with insufficient building approvals to meet targets.

Immigration has surged, with 548,800 people added to Australia's population last year, but only 173,993 new homes were completed.

Economists forecast interest rate cuts in the second half of the year, which should increase borrowing capacity and support continued growth in home values.

CoreLogic cautions new property investors about potential rental losses unless they have a substantial deposit to offset average mortgage rates of six percent.