Builder Wayne Carter said the federal election and banks tightening up lending following the Royal Banking Commission caused some uncertainty in the market.

"Yes things are a little slower, but I did think it was because of the recent election and the banks tightening up their lending criteria after the Royal Commission," he said.

"The government's announcement on helping first home buyers, with bridging to help fund the gap if they can meet a 20 per cent deposit and only have five per cent, will certainly be a driver to have more homes built as activity usually comes from the ground up.

"I think this slow period we're having is the calm before the storm."

Mr Carter said it has been a "record" two months for Wagga City Council development applications for new dwellings.

"That, along with ready-to-build land being in short supply, which is now being addressed, is now slowly coming back onto the market and having a positive correction in the long term," he said.

According to council development applications, there were 11 submissions for new dwellings and 12 that were approved in May; as well as this month already seeing a total two submitted and two approved.

Treasury data recorded NSW first-home buyers have taken advantage of more than $1 billion worth of discounts and grants since 2017.

Housing Industry Association Wagga branch president Tony Balding said recent subdivision approvals show confidence in the market, which is needed to reach the targeted 100,000 population by 2038.

"Lots of different types of housing are needed to reach the population targets and the state government is looking at a mix of different housing values," he said.

"The cause of the current slow market is not seasonal, people were waiting on a result from the federal election and we saw an immediate boost in confidence and there was an impact straight away in moving forward.

"There is a little bit of lag leading up to it and just afterwards, but I think Wagga is well placed for the economy to keep on growing."