http://nz.biz.yahoo.com//080505/18/597d.html

There has been a bigger than expected rise in house prices so far this year.

The Australian Bureau of Statistics (ASX: ABS.ax) says that on average, house prices climbed 1.1 per cent in the three months to March - nearly four times the rise economists were predicting.

ANZ Economist Alex Joiner says that is a slower increase in house prices than previous quarters.

But he says the results are mixed across the country.

"We'll probably see softer activity in some of the non-resource states where economic growth slows more considerably," he said.

"Whereas states such as Brisbane [and] to a lesser extent Adelaide and Perth, we'll probably see their house prices supported by the very strong economic growth that is still coming from the commodity price boom."

The biggest increase has been in Melbourne, where the average house cost 4.1 per cent more than in the previous quarter.

Sydney has experienced the biggest quarterly fall, with prices dropping 1.5 per cent.