ANZ has lifted its house price growth forecasts, revealing it expects prices to continue to rise for the next two years, although the pace of growth may slow in 2022.

It predicts that Canberra house prices will increase the most by the end of the year, up by 24%. ANZ says Sydney and Hobart house prices will increase by 23%, Brisbane 21% and Melbourne 20%.

The bank predicts Darwin house prices will increase 19% by the end of the year, just below the national average increase of 21%.

ANZ has revised its forecasts upwards for every capital city and says lockdowns had failed to dampen buyer demand. It says investors are returning to the market and auction clearance rates are holding firm as listings remain low.

The bank’s forecast for 2022 is for much more subdued growth of 7% nationally, followed by just 3% growth in 2023.