Australia's housing boom is on the cusp of a cooling period, with a looming housing correction a possibility over the next year, according to research house AllianceBernstein.

The upswing phase of Australia's property market, which has seen Sydney house prices climb 30 per cent over the past two years, would likely change in the coming months, said Guy Bruten, Alliance senior economist for the Asia-Pacific region.

The "long shadow of the commodity price bust remains the key theme" of Australia's economic outlook, says Alliance Bernstein. Credit:Michele Mossop

Mr Bruten's perspective adds to a growing body of economic research suggesting Australia's housing market is tapering off. Last week, a new report by global ratings agency Fitch Ratings revealed that growth in Australian houses prices had slumped to 4 per cent, down from 7 per cent in 2014.

Alliance's research echoed the findings of Fitch Ratings, which also found the Perth house marketing had stagnated while price growth in Sydney and Melbourne was expected to slow to 3 to 4 per cent in 2015.