The increase in housing finance commitments in July suggests that the Australian property market could be bouncing back, a building and construction organisation has claimed.
However, Master Builders Australia warned that a second leg to the housing recovery is not guaranteed.
"The faltering housing upswing still needs to overcome a hangover from government stimulus programs, the lingering effects of the credit squeeze and interest rate adjustments," said Peter Jones, Master Builders' chief economist.
He went on to say that a further period of interest rate stability is required as this would engender confidence among upgraders, property investors and those buying their first homes.
Mr Jones said that a major phase of residential building is required if the country is to move towards meeting the housing needs of its population.
Last month, a report from the Australian Bureau of Statistics revealed that more than $41 billion (£23 billion) was spent on the construction of property in Australia during the second quarter of this year.
Posted by Craig Francis
