NSW shows spending strength

Thinking-about-buying-Youd-be-interested-to-know-which-kind-of-buyers-are-making-moves_157_70627_0_14099902_300New South Wales is leading the country when it comes to spending, highlighting the state’s strength.

According to Commonwealth Bank’s latest Business Sales Indicator, the eastern state has gunned ahead of Queensland in respect of national sales growth.

A strong economy will be at the forefront of property investors’ minds, and this latest news could help solidify decisions to buy Sydney dwellings.

Steady growth in NSW

The annual spending growth rate year-on-year to April was 9.5 per cent, a slight drop from March (10.2 per cent), according to a May 20 release from Commonwealth Bank.

However, the bank noted that growth was still steady across the Australian economy.

New South Wales held the title of strongest sales growth, with a trend rate figure of +0.7 per cent. This was closely followed by Queensland and South Australia.

It will be worthwhile observing future activity in the state and Sydney in particular. Sales growth can reflect a strong economy, which can lead to good results for property investors, if demand for quality dwellings remains consistent.

Savings habits of home buyers

Meanwhile in home buyers territory, it appears that a certain group is doing better at saving.

“For the first time in four years, next time home buyers¬†–¬†those who already own a home and are re-entering the market – are saving a higher proportion of their income than first time buyers, according to the CBA Home Finance Index survey,” noted a May 12 statement from Commonwealth Bank.

While investors are certainly keeping their eye on the Sydney market, existing homeowners with some financial leverage also are in a favourable position to continuing realising their property goals.

“When coupled with low interest rates and steadily growing incomes, next time buyers are now able to borrow the highest average value home loans in Australian history,” Commonwealth Bank explained.

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