The Real Estate Institute of Victoria's (REIV) December Quarterly Median Report shows the median price of houses in the town rose by 2.6 per cent to $447,000.

Cobden also proved popular with home buyers, with the median price increasing by 1 per cent to $390,000.

Portland's median house price rose 1.1 per cent to $450,000 while Warrnambool's median price increased by 0.8 per cent to $605,000.

The increase in Warrnambool's median price puts it just behind the average for regional Victoria, which sits at $610,000.

The report reveals house prices in regional Victoria continue to grow despite those in Melbourne dropping.

According to the Real Estate Institute of Victoria's (REIV) December Quarterly Median Report, regional Victorian house prices grew eight per cent over the year to $610,000, while the annual median price for units and apartments grew 6.5 per cent to $425,000.

There's good news for investors, with Warrnambool's rent sitting at $450, which is above the regional average of $420.

Houses, on average, spend 52 days on the market across all of regional Victoria, however that number drops to 39 in Warrnambool.

The city also has a 93 per cent clearance rate on houses.

REIV president Andrew Meehan said the data showed "good buying opportunities" and a resilient real estate market across the state.

"The drop we've seen in the median prices in metro Melbourne must be seen in the context of the rapid price growth Victoria has recorded over the past two years," he said.

"Property prices still remain higher than they were in December 2020 - the post-COVID real estate boom has placed Victorian property in a stronger position than ever before, a trend we continue to see across numerous suburbs in metro Melbourne and our regional areas".

"Now, as we enter the new year and the immigration levels return, we will no doubt see continuous demand in the market as Melbourne's population grows and investors see strong potential for growth in our state".

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