PHOTO: Pip Walsh and Andrew Cox are selling her home in Dulwich Hill, one of the Sydney suburbs that is nearing peak house price levels. Photo by Peter Rae. Photo: Peter Rae

Sydney house prices have continued to surge in recent weeks after recording the quickest turnaround in decades, with some suburbs already back at peak prices and others inching closer every weekend.

Houses prices regained almost a third of the value lost during the two-year downturn, Domain’s September House Price Report found, with the city’s median up 4.8 per cent to $1,079,491.

The rapid recovery – four times greater than the next strongest quarterly rebound of 1.2 per cent following the 1994 market low – defied all price forecasts.

Some suburbs are already back at boom-time prices, such as North Richmond and Green Valley, while others have increased beyond their peak – Balgowlah in the northern beaches has grown 0.38 per cent or $7500 from its 2017 peak price of $1,950,000.