New Zealand house prices will rise another 17 per cent before peaking late next year as accelerating building scrambles to right the imbalance between a lack of houses and growing demand, says economic consultancy Infometrics.

The Wellington-based firm sees 2017 as a peak for the market. It forecasts a fall-off in demand as the rapid inflow of new migrants starts to ease, while new building eats into the supply shortage. From that peak, Infometrics predicts a national decline in house prices of 14 per cent…