But he adds that while bucking the trend would be unusual in ‘normal’ times, “we’re not in normal times”.

The reasons economists are sticking to their view that the market will fall this calendar year are simple – the fundamentals that are behind the falls in 2022 are still in place and have been amplified.

Interest rates are higher, affordability has deteriorated, inflation has eaten into the cost of living, and it’s harder for borrowers to obtain a mortgage. In fact, the economy is slowing and affordability is at its lowest ebb in more than a decade.

These factors support the technical analysis that in theory housing demand will remain crimped, so prices should fall. And as some house owners feel financially stressed, they could be forced to sell – which would increase the supply of housing inventory.

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And there is a decent chance that if the Reserve Bank doesn’t raise interest rates on Tuesday, it will do so next month, so mortgage strain will further rise.

So in the face of all these obstacles why are house prices now rising? Simple, supply and demand.

Homeowners are reluctant to sell into a falling market resulting in historically low levels of housing stock. And while the number of buyers has fallen the number of sellers has fallen further.

And this has resulted in prices edging up.

“Advertised supply has been below average since September last year, with capital city listing numbers ending March almost 20 per cent below the previous five-year average. Purchasing activity has also fallen but not as much as available supply,” according to CoreLogic.

With prices firming, there is a chance would-be sellers might return to the market and the inventory of stock could increase and take some pressure off prices.

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AMP’s chief economist Shane Oliver believes there are a number of cashed up buyers still in the market, but once they have transacted the demand will fall. He is in the camp that is forecasting house prices will have another leg down.

Another factor that has helped firm up house prices is the increase in the number of people migrating to Australia post COVID. This has placed enormous pressure on the rental market and prompted some immigrants to buy housing rather than rent.

Meanwhile, the construction of new housing is falling thanks to the materials and labour supply shortages that have dogged the industry.

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