House value rises predicted for early next year

The bank’s chief economist Jarrod Kerr says the true litmus test for the housing market will be made in spring. “Confidence in the market is better gauged over the warmer months.

“We expect interest rates to fall later this year, net migration is surging back, and there’s still a shortage of dwellings. We expect the housing market to bottom over the second half of this year, and we should see some slight gains next year.”

The prediction comes on the back of the latest REINZ data reinforcing the sense the market has found a base, with both sales and prices pushing higher again last month. 

Westpac is also predicting  forecasting modest house price rises over the next few months, with interest rates set to remain at contractionary levels for some time yet.