But retirement and strong meat prices are working in the market’s favour as people look to buy or invest in coastal areas such as Warrnambool and Port Fairy.

Figures from the Real Estate Institute of Victoria (REIV) reveal Warrnambool’s median house price at the end of first quarter of the financial year was $317,500.

The median house price for regional Victoria was $348,500. Brian O’Halloran and Co director Brian Hancock said the market was moving along steadily.

“You might get a run of selling building lots, then it’s established homes, then next you’ll have a run on (selling) older homes,” he said.

He said interest was not only from local buyers.

“There is still a lot of interstate inquiries,” he said. “Lots of people are interested in moving to Warrnambool.”

He said the rural sector was starting to show increased confidence and a higher milk price in the dairy industry would further enhance that feeling.

Ludeman Real Estate director and Bruce Ludeman said the market was “not breaking any records”.

“It’s not a mad seller or buyer market,” he said. “It’s steady and solid, there are no extreme highs or lows. It has taken a fair while to recover after the Global Financial Crisis. People are a bit cautious. Job security is always a big issue.”

Mr Ludeman said there had been a small push for coastal properties.

He said the question mark surrounding the future of Warrnambool’s Deakin University campus a few months ago had also created some uncertainty in the market.

Charles Stewart Western Victoria agent Nick Adamson said sales of mid- to top-end residential properties in Warrnambool had been strong.

”Buyers are coming from a range of sectors, including retiring farmers,” he said.

“People are looking to seaside areas of Warrnambool and Port Fairy to retire. Professionals are coming to town and local people are also upgrading.”

He said the “red meat” rural sector, which included sheep, prime lambs and beef cattle, had seen a lift in prices from last year. “The market is still strong and continues to increase in value. It’s driven by unprecedented beef prices,” he said. He said the dairy market had flattened and buyers were “prudent”.