- FROM: P1
Mr Northeast said a shortage of rental properties had spurred a wave of investors buying property, while banks were making it easier for people to obtain a mortgage.
"The banks are lending to investors again and that has pushed up prices," he said.
Brian O'Halloran and Co real estate agent Brian Hancock said there was interest in south-west properties from all over the world.
"We sold the former NAB Bank building in Port Fairy to people relocating from Texas in the US," Mr Hancock said.
"That's a positive sign for the area."
Mr Hancock said there was strong demand for three to four bedroom homes with two living areas and a double garage. "In close to 40 years I think it's the shortest I've ever seen listings on the market," he said.
"I think most agents would probably tell you the same thing."
Mr Kusher said Core Logic's research showed south-west Victoria was bucking a statewide trend. "The affordable values and lifestyle factors are probably the main contributor to the result," he said.
"It actually flies in the face of what is happening in most of the rest of Victoria where value growth is slowing."
Mr Kusher said Core Logic used a unique methodology for its research where a number of factors including sales and estimates of future sales were taken into account.
"It is a more holistic approach than looking purely at only those properties that have sold to calculate a market change," he said,
Ludeman Real Estate director Mark Dwyer said there was huge demand for properties with a listing price of up to $450,000.
"There's no doubt that we're chasing more listings at the moment," Mr Dwyer said. "It seems the demand is outweighing the supply."
Mr Dwyer said one of the city's newest developments, Mervue Estate next to the Warrnambool golf course, had attracted substantial interest. The $10 million development went on the market at the start of May and most lots have sold. "We knew it would be popular but its exceeded our expectations on how quickly they've been sold," Mr Dwyer said.
The estate is a joint development between the Warrnambool Golf Club, developers and Robert and Robin Coffey.
"There's only three blocks remaining and we had a couple of calls about those on the weekend," Mr Dwyer said.