THE average house price in Warrnambool dropped by $26,000 for the March quarter.
Figures released by the Real Estate Institute of Victoria show the median price for a house in Warrnambool fell from $345,000 from the December quarter to $319,000 for the March quarter.
Warrnambool is still above the median price for a house in regional Victoria with the cost rising by 1.3 per cent to $314,000 from the December quarter median of $310,000.
Of the three main regional cities demand was strongest in Bendigo, where a 5.2 per cent improvement meant the median house price to reach a new high of $305,000.
In Geelong demand was also stable, with a 2.1 per cent increase to $385,000 and in Ballarat there was a minor reduction of 0.3 per cent to $288,000. The price tag for a house in Warrnambool has gradually risen from the June 2008 quarter when the average cost was $270,000, before dropping in the March 2009 quarter to $252,000 and hitting the highest price in the December 2011 quarter.
Warrnambool Ray White director Jess Densley said the market had remained fairly consistent over the last three years.
He said it was difficult to predict what would happen this year but recent interest rate cut may instil some confidence in buyers.
“It’s fairly consistent with last year,” he said. “We had a record year of sales last year. It was quite a busy time for us.
“At the end of the day buyers are still buying.
“We see the market as quite strong and there is confidence in the market.”
The median house price in metropolitan Melbourne was $535,000.
cquirk@standard.fairfax.com.au
