Property prices in Sydney and Newcastle are on the increase, yet Wollongong has recorded a drop of 4.2 per cent, the latest figures show.
A June-quarter snapshot released in the Bendigo Bank Real Estate Institute of Australia Market Facts report shows Wollongong's median house price dropped 4.2 per cent over the quarter.
The median figure of $430,000 was also 1.6 per cent lower than a year ago.
Over the June quarter, Sydney's median house price increased 2.7 per cent and Newcastle 1.2 per cent.
Compared to the June quarter of 2012, all zones of Sydney recorded increases with the largest in inner Sydney, up by 12 per cent.
The median price for other dwellings - defined by the REIA as a single self-contained place of residence such as individual flats, home units, and town houses - fell 3.2 per cent in Wollongong over the June quarter, to $329,000. This was 0.3 per cent lower than at the same time last year.
Over the quarter, increases in median prices for other dwellings were recorded in all zones of Sydney and Newcastle.
Illawarra Real Estate Institute chairman Trever Molenaar said the housing market was quite strong regionally and that agents were not seeing signs of downward trends.
"The only thing I could put those figures down to is that there has been a lot of lower-priced properties which have been the most popular-selling properties in the last quarter and that skews the statistics," Mr Molenaar said.
"Across the board, we had a really late start to the January season, so the market was quite slow but the latter part of this year has been really strong."
Simon Kersten, managing director of Colliers International in Wollongong, agreed that the figures did not reflect what agents were seeing in the market locally.
"On the ground, we can tell you that, in the past 12 months, everything from $200,000 to $600,000 has been going very strongly and we can't supply enough stock and the house prices are going up," he said.
"That totally doesn't correlate at all with the Bendigo Bank [REIA] report.
"My guess as to why those figures are down is because the top end has skewed it. There has been a slowness in the upper end of the market and there has been vendor discounting and that has knocked the average prices around."
Mr Kersten added that pockets of new housing stock at the lower-priced end may have also affected the median prices in Wollongong.