Craig James says housing bubble concerns must be under RBA consideration

Craig James has raised the possibility another rate cut added to risks of a bubble developing in the housing market.

He doesn't make any conclusion while noting home prices are at record highs across Australia and annual price growth of 8% remains well above the long-term average growth rate of 4.8%.

"The strength of the housing market will clearly feature at the Reserve Bank Board meeting," he said today ahead of tomorrow's meeting.

He was also reacting to the CoreLogic RP Data Hedonic Australian Home Value index jump by 1.3% in January after lifting by 0.9% in December.

"Home prices are up by 8.0% on a year ago, after recording 7.9% annual growth to December," he said.

The index noted the most affordable 25% of capital city suburbs have recorded a gain of 7.3% in January compared to 8.8% across the middle 50% of suburbs and 7.9% across the most expensive 25%.