So remember how 2016 was meant to be the year the housing bubble started to seriously deflate? Well in the major city markets of Sydney and Melbourne little oxygen escaped with dwelling values rising more than 15 per cent and more than 13 per cent respectively.
The love affair with residential property doesn't appear to be over yet.
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Interest rates steady
There was a case to cut, but new Reserve Bank Governor Philip Lowe has kept rates on hold. Peter Martin explains why.
The yearly gains were boosted by a surge in prices over December after more modest gains in November - an outcome that few had anticipated.
With capital growth of still more than 10 per cent for 2016 calendar across the five biggest capital cities combined it's easy to see why investors demand for residential property remained strong - despite attempts by regulators to limit finance to cool demand and by banks to increase the cost of investor borrowing.
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Factoring in gross rental yields and capital gains, CoreLogic calculates that housing as an asset class, earned a total annual return of 14.7 per cent based on the combined capital cities index results.
These returns would have been significantly higher for Sydney (19.2) and Melbourne (17.1). Putting this into perspective the average balanced superannuation fund earned around 7.2 per cent over the same period and the share market was up 7 per cent.
Five-speed market
The figures out paid to the Reserve Bank argument that the property market was experiencing a solid easing over the year and that its interest rate cuts it made during the year would not boost demand for housing.
But 2016 also crystallised the emergence of a five speed property market. Sydney was in top gear with Melbourne, Canberra and Hobart one shift down.
After that other capital cities, Brisbane and Adelaide registered healthy but more subdued growth of 3.6 per cent and 4.2 per cent respectively. And then there was Perth - down 4.3 per cent over the year.
Regional Australia limped along gaining 2.8 per cent across Australia but with patchy spots like Western Australia where mining towns home values sank like a stone.
Apartments struggling
The other aspect to the multi-dimensional property market is that the value gains in apartments were far weaker than in houses.
The value gains in apartments were far weaker than in houses.
"Melbourne house values are up 15.1 per cent over the year compared with a 1.7 per cent rise in unit values, while Brisbane house values are 4.0 per cent higher over the year, with unit values falling by -0.2 per cent," CoreLogic said.
However the overall strong results for the year show that this housing cycle which began in 2012 is now longer and stronger than economists had expected.
The numbers show that since the global financial crisis residential property in Sydney has gone up by almost 98 per cent and in Melbourne by near 84 per cent.
The positive effects of this housing growth is that it has helped a construction sector pick up some of the slack caused by the end of the mining boom and it has undoubtedly contributed to the wealth effect of property owners and thus consumer confidence.
The average Sydney home owner say the value of their property rise by $10,000 each month, according to CoreLogic's Tim Lawless.
Affordability challenge
The most important negative effect is that it has locked so many would-be buyers out of the market as affordability levels are increasingly challenging.
And even for those that own their own homes the recent CoreLogic Housing Affordability Report shows Sydney dwelling prices were 8.3 times higher than annual household incomes and households were dedicating an average of 44.5 per cent of their income to service a mortgage (based on an 80 per cent loan to valuation ratio and the average discounted variable mortgage rate).
So how long can it last? The forecasters are now saying 2017 will be the year that the housing headwinds could get stronger. We are already seeing signs that banks are starting to increase interest rates on some loans but not yet for owner-occupiers.
But banks are quietly suggesting this will happen even in the absence of an official RBA rate rise. Some fresh supply in 2017 particularly in the apartment market will also place down downward pressure on prices.
None of this points to the property bubble bursting - but perhaps a bit more air will leak out in 2017 as growth in prices eases.