House prices are expected to rise as the year goes on - on the back of increased sales activity

A new report from Cotality NZ says lower interest rates and a growing economy are all contributing factors.

Chief Property Economist Kelvin Davidson says while it might however be a bit of a grind for a couple of months first - there is some hope for sellers.

Davidson says that could take some "pricing power" away from buyers and put it in the hands of sellers.