The Sydney and Melbourne property markets have driven the biggest monthly lift in national house prices in 16 years as falling interest rates and a shortage of supply combine to drive up values.

CoreLogic's monthly measure of values showed dwelling values across the nation's capitals jumped by 1.7 per cent in November, the biggest monthly lift since 2003.

The increase was driven by the nation's two largest property markets.

Dwelling values across the nation's capitals have had their largest monthly gain since 2003, according to CoreLogic. Credit:Peter Rae

House values in Sydney alone increased by 3.1 per cent, taking the median house value to $956,249. It was a $37,900 increase through the month, with values now up by 4 per cent this year.