Housing approvals tumble in February 2012

Demand for home loans tends to recede when times are hard and Aussies are currently seeing their household budgets stretched by rising living costs.

The number of new houses being built tends to offer some insight into the strength of the property market across Australia.

Figures released by the Housing Industry Association last week showed that the number of sales throughout the nation picked up slightly in February, but a new study released today (April 2nd) by the Australian Bureau of Statistics is less encouraging.

Indeed, the report indicates that the number of new building projects being approved fell by 7.8 per cent in February in seasonally-adjusted terms, following a 1.1 per cent rise in January.

New South Wales witnessed the largest dip, with the amount of new developments tumbling by a huge 41.2 per cent during the month, although this was partially offset by growth in other parts of the country.

The value of new dwellings declined by 32.1 per cent – which represented a huge turnaround on January – when the figure was up by 51.6 per cent.

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