Real Estate in Adelaide 'Becoming More Affordable'

People hoping to buy real estate in Adelaide may be encouraged to hear the city is becoming more affordable, according to new statistics.

Data from the Housing Industry Association (HIA) and Commonwealth Bank Housing Affordability Index showed homes for sale in Adelaide jumped 7.2 per cent on the rankings, when compared with the previous three-month period.

Real estate in Adelaide was also 20.4 per cent more affordable than the same period in 2011, with HIA regional executive director for South Australia Robert Harding describing the figures as a step in the right direction.

He remarked: "Housing affordability improvements continued apace in the final quarter of 2012 and means that the state is one of Australia's most affordable in terms of house purchase.

"For Adelaide, the latest increase means that affordability there is at its highest level since 2003. Affordability in regional SA is also approaching decade highs."

According to Mr Harding, interest rate cuts made by the Reserve Bank of Australia at the end of last year had a "significant impact" on the market.

Adjustments to the state's first home buyer grant were also effective, he went on to say, with further boosts to property sector activity predicted in the future.