Pressure mounts on Government as house prices forecast to leap 15 percent this year

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PHOTO: That’s on top of last year’s massive 11 percent growth. Credits: Video – Newshub; Image – Getty

If you’re a first home buyer trying to break into the country’s overheated market, you might be out of luck this year.

Westpac economists are forecasting a huge 15 percent increase in national house prices this year. That’s on top of last year’s massive 11 percent growth.

It would mean a million-dollar house – the average home in Auckland – would be worth an extra $150,000 by Christmas.

The Government is expected to announce its plan to rein in house price growth soon, but, according to the experts, there’s little they can actually do.

“We’re experiencing the fastest growth in house prices we’ve seen for decades. We’re looking at 15 percent house price growth over 2021,” says Westpac chief economist Dominick Stephens.