It appears Australia’s housing boom is set for a cooling period this year.
According to research house AllianceBernstein, 2015 could see a housing correction.
Guy Bruten from Alliance spoke to The Age and said Australia’s property market would change in the coming months from one that saw prices in Sydney jump 30 per cent in the last two years.
Alliance research has found that Perth’s housing market has stagnated and Melbourne and Sydney’s growth should slow to around 4 per cent or less this year.
Mr Bruten pointed the finger at falling commodity prices for the country’s economic outlook.
Despite the commodity price falls, Australia did add 37,000 jobs in December according to Australian Bureau of Statistics figures which was better than expected.
However Mr Bruten told The Age these positive employment figures might not continue in the long term and the pressure on employment could translate to the housing sector.
“Perth has already been underperforming relative to Sydney, after out-performing dramatically through the commodity-boom phase,” he said.
“There is a clear risk that falling house prices may be the next phase in the post-commodity-boom adjustment story.”