Industry figures are calling on the Reserve Bank to stimulate the economy, claiming new housing data shows a continued lack of confidence.
ABS data for January has indicated a 1.24% drop in home loan approvals. The drop in January - typically a slower month for the housing industry - comes on the heels of nine months of increasing activity. But Master Builders chief economist Peter Jones nevertheless labelled the decline a sign of weak confidence.
"The two recent rate cuts in November and December are not enough, and Master Builders believes the Reserve Bank needs to do more to boost confidence and maintain a sustainable recovery in residential building," Jones said.
Loan Market has also called for Reserve Bank cuts to boost the economy. The broking business said that though banks were now moving independently of the RBA's rate decisions, the cash rate still had "significant influence" over the housing market, and could provide a boost to the sector.