ANZ has joined ranks with Westpac and Commonwealth Bank by revising their predictions for the property market.

Economists at ANZ are citing stimulus measures and record-low interest rates as factors that will not only limit price declines, but actually result in modest price growth this year. They predict that the national peak-to-trough decline that began in April will be just 2.1%, and will finish with a 2% gain when the year is done.

ANZ predict that national prices will increase by 9% in 2021, Brisbane prices will increase by 9.5%, and Melbourne prices will grow by 7.8%.

ANZ economists Felicity Emmett and Adelaide Timbrell said the bank’s view that house prices would decline around 10% “has proven too pessimistic”.

The factors that motivated ANZ’s one-eighty on their prediction are government income support, home loan deferrals, and the prospect of low interest rates for years to come