Australians wanting to buy their first home are about to find that already-tricky task even more difficult, with house prices set to rise by as much as $154,000 by the end of next year.

Westpac has forecast that dwelling prices will increase by 6 per cent this calendar year before a further 8 per cent hike in 2026, thanks in part to the Reserve Bank's three recent interest rate cuts.

According to Canstar, those increases would see Sydney's median house price rise by a little more than $154,000 between now and the end of next year, taking it up to about $1.67 million.

"Sydney's median house price could rise by up to $154,000 by the end of next year if house prices rise in line with Westpac's dwelling price forecast," Canstar data insights director Sally Tindall said.

"For those alrea

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