Australia’s housing market ‘buckling’ under widening gap between income and home values, report finds

While the housing downturn was largely driven by Sydney and Melbourne, the slowdown trend was evident in most regions, according to CoreLogic. Photograph: Darren England/AAP

Australia’s housing downturn is being driven by a widening gap between income, borrowing capacity and home values, but the dip is likely to be “shallow and short-lived”, a new report has found.

In December, Australia’s property market eased with home values falling 0.1% after a flat result in November and a gradual slowdown over last year, according to CoreLogic.