WHILE attention has focused on Victoria's auction boom and the increase in prices across the state, particularly since spring 2013, a number of regional Victorian towns are yet to reach their peak property prices of 2010. 

Top of the list is Horsham, with a median price of $167,500 over the year ending 30 September 2014, almost $20,000 below its median for the year to 30 September 2010. Given that median prices are slightly below what they were during the last market peak, it offers the prospect that prices have room for growth.

This is positive news for sellers, with expected price growth, and also for buyers looking to buy immediately and seeking affordable properties.

And Morwell, with a median house price of $160,000 over the 12 months, is about 10 per cent below its 2010 peak – providing the potential for positive growth for Gippsland buyers looking for competitively priced properties. The well-located town nestled between coast and country - and on a key rail link to Melbourne – provides the potential of an excellent long-term investment.

With rising Melbourne house prices leading many first homebuyers and families on a budget to look to regional Victoria. Properties, which have not yet reached their 2010 peak, offer the opportunity of a foothold on the property ladder.  And although there are no guarantees, they also offer the prospect of capital growth.

Other centres also below their 2010 peak include Maffra, eight per cent less at $225,000, Warrnambool, seven per cent less at $300,000, Daylesford, four per cent less at $354,500 and Wodonga, also four per cent less at $265,000.

Greater Bendigo Regions median however has consistently grown over this period to a peak of $372,000 in September 2014.

While the REIV expects house prices to continue to remain solid in 2015, the market is likely to be more evenly balanced, although may be given a boost if the Reserve Bank further lowers interest rates.

In the next six months we expect the market to remain positive.  But as the varying rates of return to peak prices illustrate, macro factors such the unemployment rate and low wages growth combined with local factors such as local unemployment levels, infrastructure and transport can all have a bearing on prices.

As always, remain in touch with the market via local agents who can update buyers – and those thinking of selling – of market values in each part of the state, and of local changes that may have a bearing on the price of properties going to market.

Craig Webster

Chairman, Real Estate Institute of Victoria Bendigo Division