Residential building approvals have missed market expectations, falling 5 per cent in April, worse than the 3 per cent fall tipped by economists.

UBS says: "We have downgraded our house price outlook to fall 5 per cent-plus over the next year; below our prior long-held view of [flat] to minus 3 per cent year-on-year. We continue to expect the RBA will hold until at least the second-half of 2019, but given the downside risks to our housing and consumer outlook, the RBA could remain on hold for even longer."

CBA says: "The monthly flow of building approvals is holding up at solid level. As a result the backlog of work in the pipeline in both the residential and non‑residential sectors is at record levels. This means building activity should remain strong over the next year or so, at least... In our business liaison we are hearing that building companies are at times finding it hard to find suitable labour."

ANZ says: "The April approvals data provide further evidence that residential building approvals are around the peak. But even if they fall from here, the backlog of work remaining will keep housing investment elevated. Of more concern in the report is the ongoing decline in non-residential approvals."