Reaerve Bank of Australia officials have conceded the instant jump in house prices after its first interest-rate cut this year came as a surprise, with home values rising every month since.

In a wideranging speech at the Australian Industry Group Executive Luncheon, RBA chief economist Sarah Hunter pointed out the bank underestimated how quickly Australians would respond to lower borrowing costs.

“Thus far, the response has been a little stronger than we anticipated, with activity in the established housing market picking up slightly more than expected in recent months,” Ms Hunter said.

In other words - Aussies went on a property buying spree faster than the RBA thought.

The central bank slashed interest rates three times this year, dropping rates by 25 basis points in each of February

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