Economic growth across the country

While the expectations of economic expansion over the past year have not quite been met by reality, there is still growth happening in financial markets and real estate in Australia. These hot pockets of activity need to have their flame fanned in order to stoke the fires of industry, employment, exports and other sectors into creating a more successful year than last. The Commsec State of the States report for January 2015 reveals where investors and governments should focus their attention to further fuel economic growth.

When it comes to overall economic growth the report pegs the Northern Territory and New South Wales as the two top states, both excelling in different areas to reach an equal first place. While the NT excelled in many areas, including employment statistics, the territory faltered when it came to housing finance and population growth. Investment in local real estate and infrastructure to draw interstate migration could be a serious area of enquiry for progressively minded investors.

The other top ranking state, NSW, is no newcomer to the top rank and was held aloft by aggressive business investment, prolific dwelling starts and a hard stance on unemployment figures. The real shining star in the NSW's mantle is their retail trade sector, which was ranked highest in the country.

Construction and real estate in Australia

Construction was dominated by the tied-winner, the Northern Territory, followed by Western Australia, Queensland and NSW. It should be noted however, that the September quarter figures for the NT were unavailable at the time, so Commsec used June figures in their place. Especially important is the fact that construction work is higher than the decade average in every single state/territory.

Commitments for home loans were higher in the ACT, Victoria, WA and NSW than the decade average, while the rest of the states did worse than their ten year trend. Some industry observers feel that softening markets may lead the Reserve Bank of Australia (RBA) to a rate cut in the near future.

"With moderating housing lending and GDP growth below trend, inflation well within the RBA's target zone, the RBA Board should be considering a cut in interest rates at its February meeting," said Neville Sanders, president of the Real Estate Institute of Australia.

Dwelling starts across the country were positive with the exception of South Australia and Tasmania. Those looking for houses for sale in the other states and territories may find that they have more stock to choose from as 2015 rolls on.