SYDNEY, July 2 (Reuters) - Home prices in Australia's major cities rebounded by 1 percent in June, the largest monthly increase in over two years as cuts in interest rates began to make an impression on subdued demand, an industry report said on Monday.
Figures from property consultant RP Data-Rismark showed dwelling prices were still down 3.6 percent on June last year, but that was an improvement from a 5.3 percent decline in May.
Prices for houses rose 1.2 percent in June, from May, while those for units dipped 0.3 percent. Dwelling prices in Sydney, Melbourne and Brisbane all rose by 1 percent in the month.
The pick up could be a sign that interest rate cuts from Reserve Bank of Australia (RBA) in May and June were having an impact. The central bank lopped a total 75 basis points off its cash rate, taking it to 3.5 percent, while mortgage rates fell by around 55 basis points.
The RBA holds its next monthly meeting on Tuesday and is widely expected to hold rates steady for the time being. (Reporting by Wayne Cole)