A new state has taken the top spot for home loan commitments, according to the State of the States economic performance report by CommSec.
Victoria is now ranked in first place for housing finance, with the number of commitments 11.5% above the long-term average. Next strongest was NSW, up 10.4% on the decade-average. Meanwhile, the ACT slipped from first to third spot on housing finance, up 8.4% on the decade average, followed by Western Australia, which was up 5.5%.
In positive news, the report revealed that in four of the states and territories – Victoria, NSW, ACT, and Western Australia – trend housing finance commitments are above decade averages. Further, in four of the eight economies, trend commitments in February were above year-ago levels.
However, the Northern Territory is now the weakest for housing finance with trend commitments 23% lower than its decade average. Next weakest was South Australia with trend commitments down 13.7% on the decade average.
In Tasmania, home loan commitments are 10.8% below decade averages. But encouragingly commitments are growing – up 0.7% on a year ago.
Turning to housing construction, dwelling starts are above decade averages in seven of the states and territories, according to the report, and starts are above levels of a year ago in all but the ACT.
NSW has taken the mantle of the strongest in the nation for new home construction, with starts almost 49% above decade averages. In addition in the December quarter the number of dwellings started was 9.3% higher than a year earlier.
In second spot was Western Australia, with starts 43.1% above decade averages, followed by Northern Territory with starts up 39% on decade averages and Victoria, up 22.9%.