PHOTO: Those looking to buy a home for the first time are in for a shock, as a new report from a major economist shows a dire outlook for this year.

In grim news for Aussies trying to get their foot on the ladder of the property market, house prices are tipped to soar by a massive 17 per cent this year across our capital cities – marking the fastest pace of growth since the late 1980s.

ANZ economists have warned in a new report that Sydney and Perth housing prices are forecast to jump by double digits in 2021.

Sydney, which already has a median house price of almost $1.1 million, is tipped to experience its largest one-year jump in prices since 2015 – a massive 19 per cent rise.

It’s a crushing blow for those looking to buy their first home in the city — some have reached out to in recent weeks saying they can’t buy a home in even the cheapest suburbs even with up to $135,000 of savings behind them.

Meanwhile, house prices in Perth are also tipped to jump by 19 per cent this year, followed by Hobart (18 per cent), Melbourne and Brisbane (16 per cent) and Adelaide (13 per cent).