HOUSE PRICES COULD RISE 17 PER CENT THIS YEAR

Australian housing prices are set to soar 17 per cent this year across the capital cities, a sharp rise that could lock some aspiring first-home buyers out of the market, ANZ economists have warned.

Sydney and Perth housing prices are forecast to jump 19 per cent in 2021, followed by Hobart (18 per cent), Melbourne and Brisbane (16 per cent) and Adelaide (13 per cent), the research found. ANZ previously forecast a 9 per cent national rise this year.

With banks likely to make it easier to get a home loan, the bank regulator could step in later this year and restrict borrowers from taking on too much debt compared to their incomes, which would slow price growth to 6 per cent in 2022.

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