State of the nation unveiled in latest report
Each quarter, Commsec releases the State of the States report, which judges each state and ...
Each quarter, Commsec releases the State of the States report, which judges each state and territory on a number of economic and growth indicators, measuring these against each region's averages across the past decade. It provides a good measure of where states are strong, where they have room for growth, as well as of prevailing economic trends across the country.
There has been no change at the top in the past three months, with New South Wales holding onto first place based on several economic factors, which will interest anyone looking to buy a property over the coming months. It previously held the top spot alongside the Northern Territory, but has edged ahead to claim first place outright.
Despite strong challenges from Western Australia and the Northern Territory, NSW has emerged over the last quarter as the best state or territory for dwelling starts. This figure for NSW is nearly 50 per cent above the decade average for the state. On top of this, Commsec noted that in December 2014, starts were a significant 9.3 per cent higher than in 2013.
With Australian Bureau of Statistics figures indicating that building approvals in the state have also now been rising for six consecutive months, the number of dwelling starts may yet continue to rise as well.
The growth on the supply side of the equation appears to also be met by consumers. The State of the States report indicates that NSW emerged in second place this quarter for housing finance, with commitments 10.4 per cent higher than the decade average. Considering the significant growth seen in house prices across Sydney in the last two years, this is a very positive result.
According to the April statement from the Reserve Bank of Australia's governor Glenn Stevens on the cash rate, lending has been picking up across the board for investors of late - perhaps suggesting some incoming strength for the commercial real estate sector as well.
Meanwhile, despite slight declines, lending to those after investment property or something to buy as an owner-occupier remained strong.
Making the most of the now
Even though there have been concerns about the affordability of real estate in the Sydney market, this excellent result for NSW in the State of the States report suggests the economy continues to flourish. If this comes to pass, there will be much more room to buy into real estate in the city or country.