The median price of an Australian home increased 22.4 per cent over the past year – the biggest annual percentage gain in more than three decades. That’s a $131,000 jump in just 12 months, according to CoreLogic data.

A separate Domain survey of the value of free-standing houses (excluding apartments) shows the median house will now set you back $1.6 million in Sydney and $1.1 million in Melbourne.

Historically low-interest rates and COVID-19 disruptions have both played a role in pushing up home values last year. So, amid talk of interest rate rises, what does 2022 hold in store for home values?

Today on Please Explain, national property editor Chris Harrison joins Jess Irvine to discuss.