The recent rate rise is not expected to affect Australian house prices.

CoreLogic research director Tim Lawless says other factors will keep them steady.

“The lift in interest rates could act to dampen some of the recent housing exuberance, although a range of other factors are likely to support the continued stabilisation in home values, including low available supply, extremely tight rental conditions and higher demand via net overseas migration,” Lawless says.

Many economists have now flipped their predictions of price drops this year to predict price rises.

Although Morgan Stanley analysts expect further drops this year as a result of higher interest rates and weaker employment conditions.

National Australia Bank’s chief executive Ross McEwan says prices have bottomed.

“I think you’re seeing more and more prices going sideways as opposed to down,” McEwan says.