Westpac is forecasting a rise in house prices of 17 per cent this year. House prices are now screaming higher, with a 9 per cent increase in thelast three months of 2020 alone. Our analysis has long shown that financial factors, and in particular interest rates, are by far the biggest driver of house prices. They are forecasting a 17 per cent rise in house prices over this year. But they continue to warn that when interest rates do eventually rise, house prices will fall.

Source: New Zealand Herald February 15, 2021 20:32 UTC