Warrnambool has bucked a statewide trend with property prices rising two per cent in the March quarter despite a fall across regional areas by 0.5 per cent.
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But when you look at just houses alone, the median price is the highest it's been for at least five years.
The median price for all properties in Warrnambool was $365,000 according to latest Real Estate Institute of Victoria stats, but the median house price was $433,000.
That's a jump in house prices from $370,000 in the last quarter of 2019, and up on a high of $414,000 in 2017.
That figure also put houses in Warrnambool above the regional Victorian median for the first time since 2017.
The stats also showed rental properties continued to deliver a good return for investors with a 5.1 per cent yield compared to 4.4 per cent across regional Victoria.
The median rent in Warrnambool was $360 per week, $10 a week more than across regional Victoria.
Ludeman Real Estate director Mark Dwyer said figures from the Valuer General, which were updated monthly, now put Warrnambool's median property price even higher than REIV at $383,000.
He said that when it came to property sales, there was a shortage of supply in Warrnambool which had only got worse since the pandemic.
Because of the shortage of supply, Mr Dwyer said he believed that when the pandemic restrictions were lifted and the market got going again we would see a sharp rise in prices.
But for now the market was still good and, while prices hadn't risen in the wake of COVID-19, they hadn't fallen, he said.
He said that although a few properties sales had fallen through due to COVID-19 job losses, they were still able to secure sales with other buyers.
Mr Dwyer said properties were being snapped up soon after they were put on the market with two homes listed last week both selling.
REIV CEO Gil King said the March quarter results showed that the Victorian property juggernaut was in peak form before the outbreak of COVID-19.
"2020 has been an amazing year for real estate; property values have reached new heights across the state during January, February and March," he said.
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