Illawarra Weekly Property Market Update – Week Ending 8 February 2026

TL;DR – Key takeaways this week

• Stock levels remain tight across Wollongong, Shellharbour and Kiama, particularly for well-located family homes.

• Pricing is holding firm rather than accelerating, with buyers becoming more selective.e

• The market continues to lean heavily toward private treaty rather than auctio.ns

• Negotiation opportunities exist, but mostly on homes that miss the mark on price or presentation.ion

• Preparation and clarity are still more important than speed in early-2026 conditions.

Introduction – The decision buyers are really facing right now

Early 2026 is shaping up as a market that rewards clarity rather than urgency.

Across the Illawarra, buyers are no longer dealing with the panic conditions of past cycles, but they're not operating in a surplus market either.

Choice remains limited, prices are steady, and competition tends to concentrate around the same type of property: well-located, well-presented homes that suit long-term owner-occupiers.

For buyers, the challenge isn't "should I rush?" — it's how to make a confident decision when good stock is scarce, but not every listing deserves a premium.

This weekly update focuses on what's actually happening on the ground across Wollongong, Shellharbour and Kiama, and how buyers should interpret the signals rather than react to headlines.

Market Conditions Across the Illawarra

Wollongong, Shellharbour and Kiama: similar pressures, different dynamics

While often grouped, the Illawarra sub-markets are behaving slightly differently.

Wollongong continues to be driven by owner-occupiers prioritising proximity to employment, transport and lifestyle amenities.

Demand remains strongest for established homes in inner suburbs and well-connected pockets rather than fringe locations.

Shellharbour is showing a clear split. Family homes remain competitive, while some newer or less differentiated stock is taking longer to transact.

Buyers here are more value-conscious, comparing properties carefully rather than stretching automatically.

Kiama remains tightly held. Fewer listings mean fewer transactions, which keeps pricing stable but makes quality hard to secure.

Buyers in this market tend to be decisive once the right property appears, but patient when it doesn't.

Across all three, supply — not demand — remains the defining constraint.

Pricing, Stock Levels and Days on Market

Firm prices, selective buyers

Median pricing across the Illawarra is holding within a narrow range rather than trending sharply upward or downward. This reflects a market that is absorbing demand without overheating.

What's changed is buyer behaviour.

Homes that are:

• realistically priced

• well presented

• aligned with long-term owner-occupier needs

They They

are still selling within a relatively short timeframe.

Properties that fall short on pricing, layout, location, or presentation are staying on the market longer, creating a clear divide between "market-ready" and "market-resistant" listings.

This is where many buyers misread conditions. A property sitting longer doesn't necessarily mean the market is weakening — more often, it means the property itself is misaligned with buyer expectations.

Private Treaty Dominance and Negotiation Reality

Why auctions aren't telling the whole story

Auction activity remains limited across much of the Illawarra, with private treaty continuing to dominate.

This matters because clearance rates alone don't accurately reflect buyer leverage or seller motivation in this region.

In private treaty conditions:

• Negotiation is more nuanced

• outcomes depend heavily on preparation and timing

• Sellers are often open to structured offers rather than price reductions

Buyers who understand comparable sales, vendor motivation and days-on-market trends are finding opportunities — but only when offers are grounded in evidence rather than optimism.

This is not a market for low-balling. It is a market for measured negotiation backed by clarity.

Local Insight: What Buyers Commonly Misread

One of the most common misconceptions right now is assuming that slower sales automatically equal better bargains.

In reality:

• Good homes are still selling quietly and efficiently

• Negotiation leverage tends to appear on compromised stock

• "Waiting for a drop" often means waiting longer for the same outcome.

Another overlooked factor is micro-location. Buyers often compare suburb medians without accounting for street quality, aspect, zoning or walkability. In a low-stock environment, these details matter more, not less.

Buyer Reality Check – Are You Ready for This Market?

Ask yourself:

• Do I know whatI'mm willing to compromise on — and what I'm not?

• Am I clear on the fair value for my target property type?

• Is my finance and decision-making ready for a private treaty negotiation?

• Would I recognise a good opportunity quickly if it appeared?

If the answer to any of these is "not yet," the solution isn't rushing — it's preparation.

4–6 Week Outlook (Directional, not predictive)

Looking ahead into late summer and early autumn:

• Stock is expected to remain constrained rather than expand materially

• Buyer demand is likely to stay steady rather than surge

• Pricing should remain stable unless supply meaningfully improves

• Negotiation will continue to depend on property quality, not market averages

In short, conditions are likely to reward informed buyers rather than reactive ones.

Conclusion – Clarity beats speed in early 2026

The Illawarra market in February 2026 is neither booming nor retreating. It's functioning — and functioning markets favour those who understand them.

For buyers, the advantage lies in:

• knowing what matters

• ignoring noise

• assessing each property on its own merits

This is a market where smart decisions compound over time, and rushed decisions tend to linger.

Your Next Action

If you're buying in Wollongong, Shellharbour or Kiama and want clarity around value, strategy and realistic options:

• Download our Illawarra Suburb Guide, or

• Book a free buyer strategy call to talk through your situation

📧 Contact: joel@theshorelineagency.com.au

Disclaimer

This content is general information only and does not constitute financial, legal or planning advice. Buyers should seek independent advice specific to their circumstances.