Government involvement is definitely one of the x-factors that can change the game. Perhaps there is not as much in the kitty to stimulate housing now, but there are plenty of changes they can make to pump up housing instead (immigration, foreign ownerships laws etc.).
Housing volume is by no means a silver bullet but I think it provides valuable information in conjuction with other measures.
I don't have access to the rpdata data set used in the charts above, so cant provide a cash rate overlay without it getting very messy. Here's a quick Melbourne chart though using the abs data again.
