Big four lender Westpac has revised its property price forecasts, tipping values to rise 15% in 2021.
The bank had previously predicted prices would rise 10% in 2021 and again in 2022 but changed its tune today.
With the market booming, Westpac said much of this growth would be seen this year, before slowing to grow by 5% next year.
Westpac economists Bill Evans and Matthew Hassan said the housing market had started the year well ahead of expectations, and the rapid pace is unlikely to fade anytime soon.
“Some moderation is likely, particularly as affordability becomes more stretched for owner occupiers,” they said.