The veteran sales consultant and director of Dalton Partners said he had "never been more scared of an election outcome".

"Not for myself, but for tenants and where rents could have escalated to and current home owners and investors and where their equity positions could have been in 12 to 18 months should the election have gone the other way," Mr Merlo said.

"It's quite amazing in seven to 14 days how sentiment can change so quickly. The election outcome, continued press on lowering interest rates next week and APRA's proposal of easing the seven per cent mortgage stress threshold, that will certainly now allow potentially more people to secure a home loan or to be able to borrow a little more money to acquire the home they wish to purchase, coupled with the government pledge to underwrite any shortfall of deposits up to 20 per cent on home loans for first-home buyers, thus removing the costs of paying lenders mortgage insurance, has put a spring back into the step of many agents and the market over the last two weeks."

Mr Merlo said although there had been plenty of good results still in the market place the volume of mainstream sales and confidence had diminished over recent months given revised lending guidelines and the election uncertainty.

But he observed increased enquires in recent days and believed confidence would build quickly, predicting prices would stabilise and potentially lead to a reduction in days on market.

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He said enquiries had "increased dramatically" on a four-bedroom home at 7 Penelope Place in Kotara since the election, coupled with a price adjustment to $665,000.

But Mr Merlo suggested it would be some time before we saw prices return to 2017 levels.

His sentiments were echoed by several other Newcastle agents during the week.

Scott Walkom, agent and director of Walkom Real Estate, expected the Newcastle market would bottom out in the near future if it had not already.

"It's definitely the most positive influences we've had for the past six months," Mr Walkom said.

"If we're not at the bottom of the market, it will be very soon. I think we could argue that in Newcastle we're pretty much at the bottom now and that we didn't have the big rises that Sydney had and we don't need the same time to recover."

First National Newcastle City agent and principal George Rafty said since the election, "we've noticed more consumer confidence in the market and I think the market has definitely turned the corner".

"We've had our best month since May last year," Mr Rafty said. "We've sold 20 properties through a range of suburbs and from $320,000 to nearly $4 million, so across all markets."