Although property transactions in the Illawarra will likely continue to slow due to the coronavirus pandemic, there could be "silver linings" for the region, an expert says.
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The Domain Group has released the Domain House Price Report for the March quarter.
The report notes that nationally, house and unit prices increased during the first quarter of 2020, but this growth is likely short-lived amid the pandemic.
The report also includes figures for the Wollongong, Shellharbour and Kiama LGAs.
"I think the overall trending that we were seeing was the pace of growth slow anyway in those areas prior to the hit of COVID-19," Dr Nicola Powell, senior research analyst at the Domain Group said.
However, Dr Powell said the pandemic was "this key turning point" for the housing market in mid-March.
"It was almost like a switch, and dynamics changed," she told the Mercury.
"That's really when we saw that economic shutdown, with business closures, and the banning of open homes, which will impact all markets to a varying degree.
"So if it is going to affect the Illawarra region, I think we're going to see transactions slow in the coming weeks and months.
"New listings have already slowed, because I think... We're all cautious, I think vendors are being cautious."
According to the Domain report, as of March 2020, Shellharbour units had a median price of $590,000.
This was up from $535,000 a year prior, an increase of 10.3 per cent.
Meanwhile, Shellharbour houses had a median price of $620,000 as of March 2020, the same as 12 months prior.
At March this year, Wollongong houses had a median price of $725,000, compared to $700,000 at March 2019.
Wollongong units had a median of $530,000; this was down from $555,000 a year earlier, a drop of 4.5 per cent.
Kiama houses had a median price of $890,000 at March 2020. This was up from $830,000 a year beforehand, an increase of 7.2 per cent.
Going forward, Dr Powell said the direction Illawarra prices will take is unclear, "as it's a once in a lifetime event we're living through".
She said the three main elements that will support prices through this uncertain time were wage subsidies; the "ability to take a holiday on our mortgages"; and historically low interest rates.
She also said there could be positives for the Illawarra market.
"One of the things I think is going to be a silver lining for the regional markets is we might see more of a discussion around the decentralisation of our workforce, and the ability of people to work from home more.
"If we do see more people work from home after COVID, and we do see a cohort of people move away from cities, those regional areas that are near the coast, or have great lifestyles are going to be the benefactors of that.
"Even if we do see a slowdown in transactions, that doesn't necessarily mean we're going to see a slowdown in price once we get to the end of this pandemic.
"We could see people re-evaluating the way that they're living."
However, Dr Powell also said it was important to note that this current situation was a "controlled shutdown".
"Once that shutdown is over, things should bounce back pretty quickly," she said.
Brendan Crabb
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
