New home sales tail off in South Australia

The number of people in South Australia successfully taking out home loans and investing in a new property has entered a period of decline.

New figures from the Housing Industry Association (HIA) show there was a 5.9 per cent drop in new house sales in the state in April 2012. The result of this is that the total amount of transactions in the three months to April was 0.7 per cent down on the previous quarter.

Positive signs were recorded in South Australia in March, when there was a 16.3 per cent rise in approvals, but this was still lower than in the preceding three-month period.

The HIA went on to note the state's imminent budget announcement gives the government an opportunity to arrest the slide.

Despite the worrying signs in South Australia, the HIA said there was a partial recovery in the new homes market in the country as a whole during April, with a modest bounce of 6.9 per cent in seasonally-adjusted figures.

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