Garry Lockett, who has been a real estate agent for more than 40 years, said he had been surprised by the spike in prices about two years ago.

The median house price for the town is listed as $922,905 by CoreLogic.

In the past 12 months there have been 11 properties in Port Fairy that have sold for $2 million or more, while 23 fetched between $1 and $2 million.

"I didn't see this coming until the last couple of years," Mr Lockett said.

He said he believed the shortage of listings and high demand for property in the town would see the median price rise to $1 million in 2022.

"I didn't think it would get there when I was this young," Mr Lockett said.

He said properties were being snapped up quicker than they ever had before.

Mr Lockett said Lockett Real Estate had six properties listed and each was priced above $1 million.

He said two years ago similar properties would have been listed for under $900,000.

"The scarcity of listings is the problem and there are no blocks, so the alternative isn't there," Mr Lockett said.

Mr Lockett said there had been a number of occasions when there was only one property listed with Lockett due to how quickly they were being snapped up.

As a comparison, the median price for a Warrnambool home is $607,557, while demand for properties in Koroit has also pushed the median price up to $607,622.

CoreLogic reveals there are 31 Port Fairy properties listed for sale.

The median house price for a property in other seaside towns include $1.305 in Queenscliff and $1.44 in Torquay.

In December The Standard reported two Port Fairy homes had been snapped up for more than $5 million each.

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