MELBOURNE house prices rose to a record high index value of $454,524 in July, a jump of 8.5 per cent this year. And prices are expected to continue climbing despite the threat of higher interest rates.

Melbourne home values have now risen $17,173 above their February 2008 peak of $437,351, after which the global financial crisis knocked prices down to $419,000.

The national research director of research firm RP Data, Tim Lawless, said prices were growing modestly and showing no signs of stopping.

Follow