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Western Australia boasts second-best economy

Dwelling commencements are up 35.6 per cent in Western Australia compared with the decade average for the second quarter, according to the recently released State of the States report from CommSec.

During the June quarter, there were 7,792 dwelling commencements, which is sure to be well received by those set on building new homes. The favourable dwelling commencement figures are not the only thing worth celebrating - Western Australia's economic growth for the June quarter was 20.4 per cent higher than the 10-year average.

Perhaps the most remarkable finding from CommSec was related to construction work, with activity during the June quarter up 45.5 per cent over the decade average.

On the whole, Western Australia was named the second-best country for overall economic performance, giving up its number one spot to NSW. 

However, while the mining boom is on the decline, there is promise for the residential property market. 

Home finance commitments in the state were 8.5 per cent higher than the decade average, with the state scooping up the top place of the whole country for this economic indicator.

"Housing finance is not just a lead indicator for real estate activity and housing construction but also is a useful indicator of activity in the financial sector," the report noted.

It's not just the finance figures that warrant attention - housing starts are also important, particularly for those intent on purchasing newly constructed two-storey builders.

While NSW was the strongest state for home construction, Western Australia slid in at second place. In the likes of Tasmania, dwelling starts were 19.5 per cent lower than the 10-year average. Dramatic differences across Australia's various states and territories makes it important for buyers to pay close attention to where they're buying.

Those who have purchase properties in the Western Australian capital will be pleased by the 3.2 per cent increase in house prices over the last year, according to CommSec figures.