Nearly three out of five Australians expect house prices to rise by just under 10% over the next 12 months as optimists continue to significantly outnumber pessimists on the short term outlook for the property market. And nearly a third expect house prices to remain stable.

The results are part of the quarterly Westpac-Melbourne Institute Consumer House Price Expectations Index.

While there is a clear consensus that prices will rise, few expect double-digit price growth with just 8% expecting a 10% plus rise. Dwelling prices often surprise though.

Prices rose 3.9% in the year to June – a gain over half of consumers did not anticipate.