Home prices are expected to soar 10 per cent this year, and could prompt the central bank to hike interest rates 2015 to prevent a dangerous housing bubble.

HSBC Australia chief economist Paul Bloxham says that while the property market is not currently in bubble territory, it could head that way if borrowing rates remain at record lows. Mr Bloxham expects house prices to rise about 10 per cent in 2014, after gaining around 16 per cent in…