Melbourne's property market has achieved a milestone by touching $1 billion mark in sales of real estate during the week along with the auction on the weekend.

Punters and even most of the economists are asking for a hike in the official cash rate as the Australian central banks, Reserve Bank of Australia (RBA) holds its monthly board meeting tomorrow. A 25 basis point rise is recommended by most economists. This would take the cash rate to 4.0 per cent from 3.75 per cent.

If the banks transfer the hike to the customers then this would mean an additional $47 on the monthly payment for homeowners with average $300,000 home loan.

The odds of $1.45 are available for a 25 basis point increase during the central bank meeting on the betting exchange which would be about 70 per cent probability of such a move.

From the last week the top price of $2.50 odds have shortened. The maintained rate result at $2.76 and a 50 basis point rate increase has odds of $60.

The highest priced house was a three bedroom house in Toorak sold for $4.7 million. Analysts say that the property prices may go up even further as the interest rate rises.

Most analysts were expecting changes in the rates but the central bank unexpectedly decide to maintain the rate at 3.75 per cent even after many steps to tighten the monetary policy. Analysts say that the rising prices in the housing market in the country have shown increasing confidence.

Enzo Raimondo, chief executive of the Real Estate Institute of Victoria, said that the high prices were responsible for reaching the $1 billion-a-week mark and not the number of properties on the market.

The week saw around 900 auctions with an 86 per cent clearance rate at the weekend and 713 private sales during the week. He further said that the number of properties and the number of units under auction were not record high and high prices were the reason behind the one billion dollar mark.

Another expert, Catherine Cashmore of JPP Buyers Advocates said that the high prices is causing among the buyers who suppose that the houses are unaffordable.

The auction clearance in Sydney reached 75.3 per cent rising 2.1 percentage points from the previous week while Adelaide clearances were up 18.6 percentage points to 76.5 per cent.