If you list the right property and it's priced accordingly, it will sell.
- Brian Hancock
Warrnambool real estate agents feared the second half of the year would be a challenge when strict coronavirus restrictions were introduced.
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However, they have instead been inundated with inquiries from people looking to buy in Warrnambool.
That is despite the city's median house value increasing by 7.3 per cent to $368,000 in the past 12 months.
Brian O'Halloran and Co director Brian Hancock said he had been getting calls from people living in Melbourne keen to move to the city.
He said the high number of cases in the city had led to some wanting to move to a regional area.
Mr Hancock said that was just one of a number of factors that had resulted in a spike in property sales in the city.
Low interest rates, extra incentives for first home buyers and access to quality education and health care were also factors, he said.
Mr Hancock said a lack of properties on the market was also pushing up prices.
"It's a supply and demand issue," he said.
Mr Hancock said the number of homes for sale was the lowest he had seen in four decades.
He said it was a seller's market.
"If you list the right property and it's priced accordingly, it will sell," Mr Hancock said.
Ray White Real Estate partner Fergus Torpy said the past three months had been extremely busy.
He said rising prices in cities on the fringe of Melbourne were prompting people to look further afield.
In addition to that, Warrnambool's liveability was a huge drawcard for young families.
Mr Torpy also pointed to low interest rates and first home buyer grants as factors in the increased demand.
He said it was not known whether prices would continue to rise.
Mr Torpy said the market may even out if COVID-19 is contained, or its popularity may increase if there is a flurry of people looking to relocate to a regional city.
"Since the March lockdown I would have imagined things would get very tight, but it's been anything but," he said.
Real Estate Institute of Victoria president Leah Calnan said the Victorian property market had displayed true strength by staying firm despite all predictions due to COVID-19.
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