Three out of four Warrnambool homes up for auction on Saturday sold under the hammer, with signs investors are starting to return to the market.
A four-bedroom, two-bath home near the Hopkins River mouth in Florence Street sold for $682,500 to a young local family.
Ray White Real Estate agent Fergus Torpy said the bidding opened at $650,000.
The property was expected to fetch high $600,000s to mid-$700,000s.
A three-bedroom, two-bath home in Edward Street also sold to a local buyer who plans on renovating the property, Mr Torpy said.
Bidding opened with a strong bid of $485,000 before the owner and buyer reached an agreed price of $500,000.
Mr Torpy said there were other bidders looking to get involved in the auction but were knocked out early by the strong bid.
That property had a price range of $480,000 to $520,000.
A three-bedroom house on Emma Avenue was passed in after a vendor bid of $420,000. Mr Torpy said it would be placed on the market for private sale.
Five bidders battled it out for a three-bedroom house on Granter Street which sold to a local investor for $532,000.
Bidding opened at $450,000 and rose in $10,000 lots to $520,000. Mr Torpy said the winning bidder then jumped in as bids rose in $5000 and $1000 lots to the final sale price.
He said there was still strong buyer activity with 98 home inspections on Saturday.
Rising interest rates had seen the market in Warrnambool level out, Mr Torpy said, after what had probably been a "whirlwind 18 months".
He said Warrnambool had traditionally been a stable and steady market and that trend was set to continue.
And with the prices and returns evening out, it was bringing more investors back into the market, Mr Torpy said.
"When the market kicked, a lot of investors sold out because of the great profits," he said.
IN OTHER NEWS:
Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content:
Now just one tap with our new app: Digital subscribers now have the convenience of faster news, right at your fingertips with The Standard:
Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.
Sign up for our newsletter to stay up to date.