Home loans continue to sit above decade average: CommSec

The CommSec State of States report gathers the latest available information in order to provide an economic snapshot of each state by observing various key indicators such as housing finance, dwelling commencements, equipment investment, retail spending, economic growth, unemployment, construction work completed, and population growth.

According to the report, Tasmania has claimed the top spot of the best-performing state and territory economy due to improvements on housing finance and retail spending after falling to the third position in the July report.

In all states and territories, housing finance commitments were well above decade averages, revealing the same result as the prior quarterly report.

Although Tasmania sits at the top position of the rankings, the ACT has held down the top spot for housing finance commitments. The report indicated that the nation’s capital has seen the value of homes increase by 61.5 per cent on the long-term average.

Following the ACT was Tasmania with an increase of 44.8 per cent in home loan values, with the Northern Territory sitting at a 42.3 per cent increase and Queensland at 37.5 per cent.

NSW has now fallen to the weakest position for housing finance, with commitments only 24.3 per cent higher than its decade average.

Western Australia, South Australia and Victoria followed NSW with rises of 24.8 per cent, 28.8 per cent and 37.2 per cent, respectively.

While decade averages showed increases in all eight states and territories, there were only three states/territories that showed home loan commitments rising on an annual comparison.

Despite ACT topping the list on decade averages, Tasmania overtook the capital on an annual comparison, where loans were up 10.1 per cent, followed by ACT at 5.5 per cent and NT at 3.5 per cent.

The remaining regions all revealed drops when compared to the same period last year, with home loans commitments in Western Australia dropping by 5.3 per cent, followed by South Australia (down 7.3 per cent), Queensland (9.9 per cent decline), Victoria (14.8 per cent drop) and NSW with a 24.3 per cent decline.

CommSec chief economist Craig James stated there was now “an orderly ranking of the country’s state and territory economies”.

“Tasmania has quickly returned to the top of the economic leader board, courtesy of consistently high rankings for the eight economic indicators,” Mr James said.

“Queensland is also a stand-out — its best overall ranking. And the ACT impressively leads the economic rankings on three of the eight economic indicators.” 

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