House prices may rise, then fall in 2013 - Treasury
The Treasury says an increase in house building may lead to a fall in house prices in 2013.
The department is picking prices to rise by between 5% and 8% in 2012, up from its forecast of just 1.6% in May's Budget.
It says record low interest rates and a shortage of listings are putting upward pressure on prices, which it expects to persist to the end of this year.
But Treasury says price increases will moderate in 2013 or even fall as interest rates rise and more houses are built in areas of shortage such as Auckland and Christchurch.
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