CoreLogic's Best of the Best 2021 report shows there were 591 houses sold for a total of $314 million in the past 12 months.

That's compared to 499 houses sold for a total of $218 million in the previous 12-month period.

The staggering amount puts the city as the fourth highest suburb for total sales in regional Victoria.

Three Geelong suburbs ranked in the top three spots - Ocean Grove, Torquay and Highton, while Mildura was fifth.

Falk and Co Real Estate director David Falk said it had been an exceptional year for sales.

"It's been a fantastic year - it's certainly exceeded all expectations," he said.

Mr Falk said his business had been operating for 23 years and the past 12 months was his best yet.

"It would have to be our best year, there's no doubt about that," he said.

The report also reveals the median price for a house in Warrnambool is now more than $580,000.

Mr Falk said houses were fetching up to $200,000 more than they would have two years ago in many instances.

"If you look back to 18 months ago, the smaller lifestyle properties out of Warrnambool were going for $350,000," he said.

"Now you would get one for $550,000 at a minimum and that's one that's a long way out of town."

Farm land has also increased in value, with $6000 to $6500 an acre a reasonable expectation two years ago, while a recent property in the Timboon area was sold for more than $11,000 an acre.

"There's no doubt regional areas are growing," he said.

"I think more and more people are coming to the south-west and I don't think it's slowing down yet."

Recent sales show how much more buyers are willing to pay for properties.

A house at 506 Raglan Parade recently sold for $447,000 after it was sold for $385,000 in October 2020.

A renovated home at 32 Skiddaw Crescent fetched $816,000 after it last sold for $239,000 in 2000, while a house in Medinah Close sold for $570,000 - a far cry from the $121,000 it sold for back in 1992.

Mortlake's median price increased by 43 per cent to $325,220 in the past 12 months, one of the biggest increases in regional Victoria, while Cobden's median price increased by 40 per cent to $363,579.

A Mortlake home at 1 Boorook Street that sold for $372,000 in December 2020 is listed for $549,000.

Mr Falk said demand was high for properties throughout the south-west.

"The demand is high right through the whole region," he said.

CoreLogic's Head of Research Eliza Owen said the estimated value of Australia's residential real estate had gone from $7.2 trillion at the end of November 2020, to reach a record high of $9.4 trillion in just 12 months.

"Strong housing market performance over the year was driven by multiple factors, including low interest rates, fiscal and institutional support for households, high household savings and relatively low levels of advertised stock," she said.

"The popularity of regional Australia is reflected in many aspects of the Best of the Best report for 2021."

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