UBS crunched the numbers and has done a historical comparison that indicates soaring property prices in major cities across Australia have begun to exhibit some bubble-like characteristics but there is no sign yet of an impending cause for it to burst until 2016-2017.

The wealth group said it expected a "stronger for longer home building boom" but detailed how worsening affordability and an inevitable rate hike by the Reserve Bank of Australia will cause a price correction in the next two or three years.

"Overall, housing is showing some bubble-like features, but it lacks a trigger to pop it near-term," senior economist George Tharenou said.

A rate hike by the RBA will be key to a price correction, said Mr Tharenou, as home prices growth was hit by interest rate increases in 2003, 2007 and 2010.

"Those downturns were only triggered when the RBA hiked," he said. "Historically the key catalyst for housing approvals to peak is RBA rate hikes; not excess supply or unemployment."

The average house price to income ratio is also tracking at record rates of 5.5, similar to bubble-like peak levels prior to the corrections of 2003, 2007 and 2010.

The report detailed the how low interest rates increased demand, including making property more affordable, in the short term.

The RBA governor Glenn Stevens has steered clear of outlining when rates may be raised, but used a speech in early June to indicate the bank has not ruled out further rate cuts.

House sales in June surged ahead to an average of 10 per cent nationally, with Sydney up by 16 per cent.

In late June, BIS Shrapnel warned home owners had between one and two years before an inevitable housing price correction began in its Residential Property Prospects report for the next three years.

The report said Sydney and Melbourne prices would start falling from 2016-2017 because of a significant increase in supply, slowing migration, worsening affordability, weaker investment returns and the threat of rising interest rates set in.

Most economists at Australia's leading banks and financial institutions do not anticipate a rate increase until the end of 2016 or beyond. After the most recent rate cut, financial markets have been pricing in just a 30 per cent chance of a rate cut over the next 12 months, the longest odds for another cut in months.

Economists at all four major banks, which cumulatively manage the bulk of Australia's home loans, are predicting no rate cut or rise in the next 18 months as they expect the RBA to wait to see if predictions of ongoing weak wages growth and an expected pick up in consumer spending are accurate before making any further changes.