Home building approvals drop 0.8 per cent

Aussies going online to compare home loans may be more likely to purchase existing properties than previously unowned ones as new-build approvals dropped in March month-on-month.

The figures from the Australian Bureau of Statistics showed that compared with February there was a 0.8 decline in the number of homes construction firms started work on, reports the Australian Associated Press.

According to the news provider, one of the reasons for the "sluggish" activity in the home building sector is the rate increase in November 2010.

Despite the drop in this area, there were positive signs in the number of residential building approvals during March, which were up 9.1 per cent compared with the preceding month.

This comes after real estate expert Andrew Toop said those considering selling their property to upgrade to a new one should take care not to purchase another house before their other one has been sold, because they should rely only on the "cold hard cash from a completed sale". ADNFCR-1761-ID-800520902-ADNFCR