New South Wales economy pick of the states

New-South-Wales-has-the-bestperforming-economy-in-the-country_157_6009695_0_14041496_300It is no secret that the housing market in New South Wales is one of the strongest in the country. With values consistently rising, auction numbers booming and the volume of sales ever-increasing, it is little wonder that CommSec’s latest “State of the States” report has ranked the state’s property sector as the best performing in the country over the three months to March – and has propelled the economy to new heights.

The report studied a range of key economic indicators to determine how each state and territory has performed over the quarter, and compared those results to the decade average. After coming in at first-equal with the Northern Territory in the previous quarter, New South Wales has edged ahead to take out the top spot. In fact, the state saw improvements of 10 per cent or higher in every category.

Population growth and retail trade were two categories in which NSW excelled, recording levels 17 per cent and 17.1 per cent higher respectively when compared to the decade average. Housing finance has also seen an impressive 10.4 per cent improvement, and construction work and the volume of dwelling starts have each posted exceptional results. The level of construction work done has grown 10 per cent over the decade average – and, in encouraging news for homebuyers, the level of new home building has jumped higher still.

It appears that supply has been building up steadily. The report revealed that NSW has seen a surging number of dwelling starts over the quarter, rising a whopping 49 per cent over the average figure recorded in the last 10 years. CommSec’s research notes that strong population growth and housing finance are contributing to this stellar performance

“Starts are driven in  part by population growth and housing finance and can affect retail trade, unemployment and overall economic growth,” the report noted.

The results indicate that New South Wales has cemented its position as an economic and property powerhouse. Homebuyers could find comfort in the surging number of new homes being built, as it could reduce affordability pressure.

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