As we head towards the end of 2019, the Illawarra property market has continued to stabilise and showed signs of slight growth, a report says.
However, "uncertainty lingers" regarding subdivisions in Calderwood, Tullimbar, Horsley, Wongawilli and Kembla Grange, as well as new unit developments in and around the Wollongong CBD.
In property valuation and advisory company Herron Todd White's year in review, director Joshua Devitt said the first quarter of the 2019 Illawarra residential property market continued on trend from the end of 2018, which saw the market continue to decline after the property boom experienced from 2013 to 2017.
"Unstable economic conditions, notably relating to employment growth and inflation, combined with the great uncertainty of the upcoming federal election in May contributed to the continuing declining property market in the Illawarra region," he said.
"At this time local agents were advising of longer selling periods, fewer buyers and decreasing sale prices.
"Post the federal election in May, there was a renewed confidence in the Illawarra property market. This did not lead to drastic changes in the market, however it did seem to at the very least halt the declining market and begin to stabilise certain property sectors."
Mr Devitt said a contributing factor to stabilising the Illawarra property market was the decision in June by the Reserve Bank to lower the cash rate to 1.25 per cent.
"Another cash rate cut by 25 basis points to 0.75 per cent in October continued to bring first home buyers and investors back into the Illawarra property market," he said.
"Valuers and agents alike are noting some strong sale prices and a decline in days on the market."
Overall, the report says during 2019, the Illawarra market changed from a declining market to stabilising midway through the year and now to more recently showing some signs of growth.
Mr Devitt said this has been evident across most suburbs and property sectors.
"Uncertainty lingers about the new subdivisions in Calderwood, Tullimbar, Horsley, Wongawilli and Kembla Grange as well as new unit developments in and around the Wollongong CBD," he said.
"Vacant land prices in these new subdivisions seem to have settled, however supply still outweighs demand and with more new land releases planned, this could be the sector which does not follow the rest of the Illawarra market."