Illawarra property values remain on the rise with the current trend pointing towards a market recovery, an expert says.
Illawarra values across all three categories - houses, units and overall dwellings (houses and units combined) - went up last month according to the CoreLogic Home Value Index.
At the end of May, Illawarra house values were up by 2.0 per cent for the month. The region's median house value is currently $958,099.
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Meanwhile, Illawarra units were up by 0.2 per cent over the month, with a current median value of $677,399.
Across all dwellings in the Illawarra, values were up by 1.6 per cent for the month. The median value currently sits at $886,272.
CoreLogic's research director Tim Lawless said the trend is clearly pointing towards a recovery after Illawarra home values fell 13.2 per cent between a peak in April last year to what looks to be a trough in February 2023. The fall from peak to trough equated to $131,500 in dollar value.
"Since February we have seen three months in a row where values have risen," he said.
"Cumulatively, Illawarra home values are up 2.7 per cent from their recent low, but are still 10.8 per cent or roughly $108,000 below their peak recorded in April last year."
He said each of the regions in the Illawarra area have seen a rise in values over the past three months.
These include Wollongong where the median dwelling price was up 4.1 per cent, Dapto-Port Kembla up 2.2 per cent and Kiama-Shellharbour that was up 1.1 per cent.
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Mr Lawless said advertised supply across the Illawarra is tracking 16.3 per cent below the previous five-year average for this time of the year.
"This shortage of available supply is likely to be a key factor supporting renewed value growth," he said.
Mr Lawless said the Illawarra's commutability to Sydney is supporting their price growth, as "we are not seeing that further afield in areas that do not have that commutability".
Mr Lawless said the trend in overall regional housing values has picked up, with the combined regionals index rising half a per cent in April, following a 0.2 per cent and 0.1 per cent rise in March and April.
"Although regional home values are trending higher, the rate of gain hasn't kept pace with the capitals," Mr Lawless said.
"Over the past three months, growth in the combined capitals index was more than triple the pace of growth seen across the combined regionals at 2.8 per cent and 0.8 per cent respectively.
"Although advertised housing supply remains tight across regional Australia, demand from net overseas migration is less substantial. ABS data points to around 15 per cent of Australia's net overseas migration being centered in the regions each year.
"Additionally, a slowdown in internal migration rates across the regions has helped to ease the demand side pressures on housing."
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