Australian Property Monitors’ (APM) quarterly housing report shows house prices during the past year have jumped by 5.8 per cent, not far off the 6.7 per cent increase seen in Sydney over the last year.

APM senior economist Dr Andrew Wilson said while Orange’s property market continued to “wax and wain” in the short term, a long-term analysis showed Orange was in good shape.

“It’s encouraging for the market. The increase is two or three times higher than inflation,” he said.

Dr Wilson said while the Orange market was extremely buoyant in 2011, it had returned to a “nice base”.

“Activity in Orange is consistent with what’s happening in Sydney,” he said.

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“I think we’ll continue to see green-change buyers, retirees and people looking for a weekender moving into the Orange market, and we can expect to see prices continue to move ahead over the remainder of the year.

“We’re also moving into spring and that’s a more positive time of year so we can expect Orange to pick up then.”

Dr Wilson said the glut in the rental market could in part be attributed to the increase in investment activity in Orange.

He said the national housing market recorded its best result in the June quarter, recording an increase of 2.8 per cent, with the median price of a house in Sydney sitting at $690,064.

“Buyer activity has increased significantly over the first half of 2013 with the rise in house prices in nearly all Australian markets being propelled by the lowest interest rates in decades, rising confidence and continued generally solid economic performances,” Dr Wilson said.

“The patchiness that has characterised market activity over 2012 is diminishing and we are seeing the fastest prices growth since the government-stimulated house price boom of 2009/ 2010, with most capital city markets and market segments at or near record levels and rising.”