Warrnambool's median house price breaks through $500,000 mark

Mornington, Geelong and Gippsland were the only other places in Victoria to make the Australia-wide list with Warrnambool coming in at 26^th spot of strong performers over the past year, according to real estate data firm CoreLogic.

It follows a nationwide trend of coastal areas being a magnet for homebuyers with a sharp price rise pushing the median price of a house in Warrnambool up almost $120,000 in just two years.

CoreLogic head of research Tim Lawless said that house prices had risen 20.3 per cent nationally over the past year. In Warrnambool, that figure was even higher at 23.8 per cent.

Prices in the city have jumped 2.9 per cent in the past three months alone.

"The annual growth rate is now tracking at the fastest pace since the year ending 1989," Mr Lawless said.

"With housing values rising substantially faster than household incomes, raising a deposit has become much more challenging for most cohorts of the market, especially first homebuyers."

House prices hit a new record high in Warrnambool in the September quarter with New Real Estate Institute of Victoria data putting the median house price at $511,000.

That's up on the previous quarter where the median price was $499,000.

And property prices are showing no signs of slowing with three auctions at the weekend selling well above the reserve.

Warrnambool's stellar growth is mirrored across the rest of regional Victoria where the average growth statewide was 2.4 per cent to a median of $570,000.

Units in Warrnambool rose 0.7 per cent to $346,000, a slightly weaker increase than across the rest of regional Victoria where they rose on average 1.9 per cent to $395,000.

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