Nationally, house prices are expected to rise by 15% by 2023, say Westpac economists.

In a new report Westpac says any deterioration in Australia’s housing market has been milder than the bank expected back in March. The bank predicts that in the next two years Brisbane house prices will rise 20%, Perth 18%, Sydney 14%, Melbourne 12% and Adelaide 10%. The improvements will be fuelled by record low interest rates, easier access to credit and the milder-than-expected recession.

“Of most importance is that we are much more optimistic about the pace of price appreciation over the following two years,” say Westpac economists Bill Evans and Matthew Hassan. Westpac’s forecast is consistent with predictions by the Commonwealth Bank which expects prices to rebound from mid-2021 – a view which is also better than CBA’s previous expectations.

In the short term, prices are expected to stabilise around the December and March quarters, possibly with some modest increases, although Melbourne will be at least one quarter behind the other states