The latest Westpac survey on whether it is the right time to buy a dwelling has increased to its highest level since the start of the year. It comes as brokers report some prospective buyers are keen to purchase before a potential rate cut increases the competition in the market next year.

The Westpac-Melbourne Institute Consumer Sentiment survey reveals buyers expect interest rates to start falling early next year and, at the very least, not increase further. They also expect house prices to continue increasing.

Westpac senior economist Matthew Hassan says consumers are coming around to the idea that rates are likely to move lower than higher. He says some confidence has returned to the market due to new incentives for buyers, with both Queensland and South Australia rolling out first-home buyer assistance. Hassan is predicting a cash rate cut in February. He says there is no expectation of getting better prices by delaying a purchasing decision at this stage.