Although housing finance commitments remain below the decade average, the rate is gradually rising according to a new report from CommSec.

The State of the States October 2013 report shows housing finance commitments in every state except the ACT, Western Australia and Victoria are below the decade-average level.

However, all states recorded a rise in commitments in the 12 months to August 2013.

The ACT led the way, with a commitment rate 10.7 per cent above the decade average and an 18.9 per cent increase on August 2012.

Western Australia was the runner-up, recording levels 8.8 per cent above the decade average.

In the past 12 months, the West Australian market has grown 14.2 per cent.

Victoria recorded commitments 8.2 per cent above the decade average, while New South Wales showed a decrease of 1.5 per cent.

Tasmania was the weakest economy on all indicators examined by CommSec.

Housing finance commitments were 22.4 per cent lower than the decade average in Tasmania. However, compared to 12 months previously, commitments climbed by 2.9 per cent.

Overall, CommSec chief economist Craig James cited Western Australia as the top-performing economy nationwide.

Western Australia led the country in retail spending, and came a close second in economic growth, business investment, construction work, housing finance and population growth.

Mr James predicted all state economies would lift in the last quarter of 2013.

Although the mining slowdown will affect some regions, this will be offset by an increase in residential building, Mr James reported.

In particular, New South Wales, Western Australia, Queensland and ACT are expected to benefit from an upswing in construction.

John can be contacted on 0749722081 or 0410433919. You can also email him at jwhitten@ihl.net.au or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).