Meanwhile, another group says the government's plan should have a positive impact on the housing market, including providing a degree of assurance for sellers.

The Morrison Government has announced that as part of its economic recovery plan, they are reducing the cost and time it takes consumers and businesses to access credit.

The government says it will simplify the system by moving away from a "one-size-fits-all" approach while at the same time strengthening consumer protections.

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Trever Molenaar, Real Estate Institute Illawarra chairman, and also of the Molenaar + McNeice agency, said while the Illawarra has been somewhat less affected by housing price drops than capital cities, it was a "step in the right direction".

"Easier access to credit will flow on to households and businesses alike," he said.

"Current wait times and criteria are at an all-time high."

Meanwhile, the Real Estate Institute of Australia believes the government's plan to increase the flow of credit to households and businesses should have a positive impact on the housing market.

REIA president Adrian Kelly said the Treasurer's announcement reduces the cost and time for consumers and businesses to access credit, while moving away from the "one size fits all" system, providing assurance for those who have held off listing their properties due to the pandemic-induced recession.

"This will allow sellers to list their properties knowing the buyers will be out there," he said.

The government has also announced that it will consult publicly with stakeholders before finalising any legislation required to implement the reforms.

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