South Australia's Home Lending

Home loans have experienced a boost in South Australia, according to new figures.

On May 13 the Housing Industry Association (HIA) responded to housing finance data released from ABS Housing Finance, showing improvements in new home lending to owner occupiers in South Australia.

Taking into account seasonal adjustments, the number of loans for the construction and purchase of new properties went up 4.1 per cent in March this year.

In the March quarter, the number of loans increased by 26.5 per cent. That's 23.7 per cent higher than 2012's March quarter.

This builds on improvement in South Australia's home loans value compared to last year, indicating some promise in the state's real estate sector.

"It’s encouraging to see housing finance, among a host of indicators, signalling some improvement in South Australia’s new home building activity," said HIA executive director, South Australia, Robert Harding.

However, Mr Harding urges that no-one become complacent as there is still a long way to go before the state sees a complete housing industry recovery.

"For this to occur, it will be crucial for the recent improvements to gather momentum. Prematurely withdrawing home buyer assistance may ultimately be costly to not only to South Australia’s residential construction sector, but also to the state’s broader economy," he said.