Yes you are reading correctly. The SEer swell has almost completely died and in it's place a weak Nor'Easter swell is trying to make it's into the beach. The result are little 1 to 2 foot waves (or logo high ... the logo at your mast base that is).
Wind is already up at around 10 knts. so by lunch time it should be enough for a 5.0. I went down to Shoalhaven Heads briefly to see what the situation there was. Wind was a bit less than in Gerroa but there is quite a bit of movement. Plenty of 3 foot waves around (that's about hip high for me or shoulder high for the midget brigade aka Dan Berry and co ;-) ).
Also had a look at Werri Beach. The Nor'Easter swell get's in there quite nicely (Thanks for the tip CJW!). The wind isn't quite getting in yet but if it gets as strong as I think it will it might be worth a try.
If you are in Sydney save yourself the drive and go for a sail at Wanda. Looks like we will see Nor'Easters for most of the week. That should bring quite a bit of Nor'East swell. I'll see if I can try out a few different spots over the next few days. (work commitments permitting)
PS: Big thanks to Windsurf and Snow for supporting these report!
here the usual pix: