The Reserve Bank says there is no cause for panic as Australia's house prices reach dizzying heights.

Australian homes are among the world's most expensive when household incomes and rents are taken into account, according to the International Monetary Fund.

Booming: The median Australian house price has soared almost 11 per cent in the past year.

Price growth in almost all capital cities in the three months to June has helped the median Australian house price soar almost 11 per cent in the past year.

But RBA board member John Edwards has tried to cool fears that the property market is becoming overheated, saying the rapid rise won't continue indefinitely.