House prices will rise 15% by the end of the year before slowing to more moderate growth in 2022, a Westpac Housing Pulse report says. The forecast appears conservative, given that prices have risen 11.3% in the first five months of the year (CoreLogic data).

The Westpac quarterly report says capital city markets are in a “fully fledged, broad-based boom”. Senior economist Matthew Hassan says all aspects of the market are showing strength, with turnover 30% above the national pre-pandemic peak. “Everyone is out there looking for any hint of a moderation to this boom,” Hassan says. “So far, there is nothing really that convincing – auction clearance rates have come off slightly, but are still running at around 80%.”

Hassan says strong price gains are happening in all cities, setting it apart from other housing booms. “In previous price rises, 2-3 cities propelled the gains each time,” he says. “One cycle was Sydney and Melbourne, and the cycle before that was the mining states. That’s just not happening now because all cities are booming.”