Macquarie Bank senior economist Justin Fabo is predicting a national increase of house prices by five per cent by the end of 2020.

"The cuts to interest rates and the increased confidence in housing, we think national prices should be up five per cent easily by the end of next year," said Mr Fabo.

"Sydney and Melbourne, roughly 10 per cent in both of these cities.

We are already going up by about a per cent a month."

Mr Fabo said the market was at the point in the cycle where, rather than callling it a buyers or sellers market, there was still a bit for everyone.

"Prices, at least in the two major cities, are still well off their peak. So for a bunch of people affordability's a bit better," said Mr Fabo.

"But things are moving quite quickly that if you're a seller, there's not a lot of stock out there. So if you want to sell your place, it'll probably get snapped up."

In relation to auction rates, Mr Fabo said clearance rates are starting to go up.

"With a bit of a lag of about six months you see more stock come on the market that reacts to higher prices and higher clearance rates," he said.

Mr Fabo stated that house prices across the rest of the country in the major cities, were still down or flat from their peaks.

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