Buyer blow as rising rates offset dip in home prices

While house prices in the biggest cities have slipped, higher rates mean they are more unafforable. (Susie Dodds/AAP PHOTOS)

First home buyers are in no better position to crack into the property market despite house prices falling in Sydney and Melbourne.

While home values have dipped for consecutive months in Australia's two largest markets, 2026's interest-rate hikes have raised the affordability hurdle even higher.