House prices soared across the country in 2021 but the heat is coming out of Sydney and Melbourne as Australia heads into the new year.

CoreLogic data shows values rose 22.1 per cent in calendar 2021 for a median home value of almost $710,000.

Property prices in Sydney, where the median home value is more than $1 million, spiked 25.3 per cent for the year, ahead of a 15.1 per cent jump in Melbourne.

Prices raced up by 28.1 per cent in Hobart, which was the strongest gain for any capital city during 2021.

The combined increase across the eight capital cities was 21 per cent for the year, while regional areas enjoyed a bigger surge of 25.9 per cent.

However, the data released on Monday also shows price growth slowed during December.

National housing values rose by one per cent in December, which was down from 1.3 per cent in November.

The pace of growth is also down from the 2.8 per cent rate seen in March 2021.

Every capital city recorded growth during December except for Melbourne, which fell by 0.1 per cent.

CoreLogic research director Tim Lawless said momentum in the housing market had slowed in Sydney and Melbourne.

“A surge in freshly advertised listings through December has been a key factor in taking some heat of the Melbourne and Sydney housing markets,” Mr Lawless said.

Mr Lawless said a two-speed market was emerging across the country, with gains easing in Sydney, Melbourne and Perth and expanding in Brisbane and Adelaide.

“In Brisbane and Adelaide, housing affordability is less challenging, advertised stock levels remain remarkably low and demographic trends continue to support housing demand,” he said.

There has also been a rise in housing values in regional areas – which was up 2.2 per cent in December and the largest monthly rise in nine months.

– AAP