A WARRNAMBOOL real estate agent says if interest rates stay low the city's property market will continue to stay strong with good interest from Melbourne and the farming sector.
Figures released from the Real Estate Institute of Victoria (REIV) show the median sale price for a house in Warrnambool during the March quarter was $450,000, which was 4.9 per cent up from the previous quarter.
The median price for a three-bedroom house in Warrnambool was $429,000 compared to the regional Victorian median price of $410,000.
The median sale price for a house in regional Victoria increased by 4.1 per cent from the previous quarter to $511,000.
"The farming community are looking at off-farm investments," Warrnambool Stockdale and Leggo director Matt Northeast said.
"And the interest rates are the big factor, if interest rates stay at record lows as they are I think people will capitalise on it. I've seen the sudden rise in prices before around the (year) 2000 mark, but I haven't seen the days on market, the turnover is so quick and I honestly haven't seen anything like it in my life. We listed and sold two properties last week within the week."
Danny Harris from Warrnambool's Harris and Wood Real Estate said the REIV data reflected what he had seen in the market over the past six months. "The price is almost growing on a month by month bases," he said.
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He said the median price of $450,000 was more indicative of an entry point home.
Mr Harris said an online auction last week for a three-bedroom house on St James Crescent sold for $67,000 above the reserve price. The house sold for $487,000 with eight registered bidders. He said there was still a strong trend of people coming out of the city and investing in Warrnambool. "The prices may shock us but in the outside world the prices are well below other coastal positioned towns," he said.
He said in the past the trigger points for a market downturn were large job losses which meant people wouldn't borrow money from the banks. "I can't see any ag jobs going, the building sector is the strongest I've seen it in my living memory."
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