Tasmanian home sales are slumping, with new home loan commitments falling for seven straight months.
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The total of 1007 housing finance commitments (including refinancing) for owner occupiers in April was about 9 per cent weaker than the recent peak of 1109 last September.
The September total was Tasmania's strongest since 2009, with many monthly totals as low as the 700s in the intervening years, according to trend terms Australian Bureau of Statistics figures.
Nationally, new home lending commitments edged up by 0.2 per cent in April, seasonally adjusted.
The effects of Tuesday's cash rate cut by the Reserve Bank will not become clear for several months.
The Reserve cut the cash rate by 0.25 percentage points to 1.25 per cent.
Two of the big four banks will not pass on the full cut to home loan borrowers.
The ANZ will pass on 0.18 percentage points and Westpac 0.20 percentage points.
On their own, a cut to interest rates will not be enough to stop the downturn in building activity.
- Tim Reardon
The NAB and the Commonwealth Bank will pass on the full cut.
Housing Industry Association chief economist Tim Reardon said the Reserve Bank's decision, fiscal stimulus and retention of the current capital gains tax arrangements would go a long way to supporting confidence in the housing market.
"An easing of interest rates is necessary in light of the slow rate of economic growth," Mr Reardon said of the national situation.
"On their own, a cut to interest rates will not be enough to stop the downturn in building activity.
"Federal income tax cuts, the First Home Loan Deposit Scheme and public infrastructure investments will also be necessary to assist in stimulating employment growth and help drive the residential building industry out of this downturn."
