But a look back at some of the homes advertised for sale in The Standard back in September 2017 shows the stark difference with regard to what your money could buy back then compared to now.

A three-bedroom home in Ekard Avenue, close to the CBD, marketed as a great first home or investment opportunity, was listed for $255,000.

In contrast, a three-bedroom home in Beamish Street in the city's west, is under offer and has a listing price of $349,000 as of this week.

A three-bedroom Merrivale home had an asking price of $289,000 back in 2017, while a three-bedroom home in Clyde Crescent in Warrnambool will go under the hammer on Saturday with a price range of $370,000 to $400,000.

Brian O'Halloran and Co agent Brian Hancock said he had not seen anything like it in more than 40 years.

He said it was not uncommon for a vendor to receive $700,000 for a Warrnambool home that would have been listed for about $500,000 12 to 14 months ago.

Mr Hancock said there had been a huge amount of interest in a large three-bedroom home in Glenview Avenue in east Warrnambool.

It is being sold via expressions of interest and Mr Hancock expects it will fetch $700,000 or more after initial expectations of between $580,000 about $640,000.

Mr Hancock said a shortage of properties for sale in Warrnambool was resulting in people seeking properties in outlying areas.

"Even if you go 20 to 30 kilometres out of Warrnambool, the demand is there," he said.

Mr Hancock said there was unprecedented interest in properties in Koroit.

"The pricing is much similar to Warrnambool now," he said.

Mr Hancock estimated 10 years ago a house would cost 40 to 50 per cent more in Warrnambool than Koroit.

"There's only about a 10 per cent difference now," he said.

Mr Hancock said a shortage of available houses in Warrnambool and the revitalisation of Koroit had contributed to the price increase.

"Koroit is a great community," he said.

Mr Hancock said the revamped supermarket made it an even more attractive option for buyers.

"Like everywhere demand has outstripped supply and the prices have gone up," he said.

Mr Hancock said buyers looking for value for money were exploring towns like Mortlake and Terang but there was also a shortage of stock in those places.

Wilsons agent Mark Wilson said Mortlake, Terang, Penshurst and Noorat were popular choices for buyers looking for value.

"Mortlake is massive and there is a diverse range of buyers looking there," he said.

Mr Wilson said recently a vendor sold a block of land in Mortlake for $110,000 after buying it for $45,000 12 months ago.

"That sort of increase is unprecedented," he said.

Mr Wilson said he believed low interest rates were making buying a more attractive option.

"There's not a nook or cranny in the region that isn't in demand," he said.

Mr Wilson said all types of properties, regardless of price or condition, were selling quicker than ever before.

CoreLogic data reveals properties in regional Victoria are remaining on the market an average of 30 days compared to 49 at the same time last year.

Ray White revealed in its latest edition of its monthly magazine that price growth in regional Victoria had far exceeded Melbourne.

"The gap between regional and capital city growth is one of the highest in Australia, likely driven by the particularly long time Melburnians have spent in lockdown since the start of the pandemic," it stated.

"With Victoria largely locked down again, it's likely that price growth will remain solid for the foreseeable future.

"The most likely driver or price moderation would be any future restrictions to finance."

Ray White states for years state and federal governments had encouraged more people to move to regional areas.

"Leading up to COVID-19, there were some success stories, particularly to areas that were located adjacent to capital cities," their research revealed.

However, the research shows, COVID-19 has accelerated the trend due to four main drivers:

Ray White principal Gavin Rubinstein said low interest rates, a lack of supply and a newfound appreciation for more space had sent prices surging across most markets around the country - with no signs of slowing down.

"Prices are even higher than before we went into lockdown," he said.

"It's just gotten more bullish and more aggressive because of low interest rates and lack of supply.

"I've never seen the market so tight in terms of options for people to purchase.

"A lot of people now are putting a lot more value on having and wanting space, so with a lack of lifestyle assets - something with a view or close to the beach where you can really improve your lifestyle - the numbers people are paying are insane."

The Standard revealed earlier this year house prices in Mortlake jumped 40 per cent in 12 months.

CoreLogic Head of Research for Australia Eliza Owen said the price boom in regional Victoria was part of a larger trend in regional areas across the country.

"As with many parts of regional Victoria, these suburbs have seen extraordinary price growth over the past 12 months, with the biggest 12 month increase occurring in Mortlake," she said.

Ms Owen said Mortlake was coming off a relatively low base but for housing alone it had the biggest percentage rise in the state.

Only units in Portarlington and Ocean Grove had bigger percentage rises.

"I think Mortlake has a lot of room to grow but it's not what you would see in a usual year, that's for sure," she said.

Ms Owen said there were a number of factors at play behind the soaring property prices across Victoria.

People not being able to spend their money on overseas travel, due to border restrictions, was one factor.

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