The top three suburbs for annual median house price growth were on the Mornington Peninsula, while the five-year growth streak continues in regional Victoria, with a 26.7 per cent annual increase in the median house price ($595,000) and a 3.8 per cent increase ($625,000) in the last quarter.

Rye led the house price growth with a 48 per cent annual increase, bringing the median cost of a home in the seaside suburb to $1,195,000.

Mount Martha saw a 34 per cent annual increase taking its median house price up to $1,870,000, while its upcoast neighbour Rosebud grew 32 per cent to $851,121.

OTHER NEWS: Bendigo Easter parade cancelled as weather wins out

REIV president Adam Docking said as expected, the report shows the metropolitan housing market is stabilising but the fundamentals remain strong.

"The Victorian residential market has recorded strong growth for over two years and as supply catches up with demand, we can expect to see a steadier period," says Mr Docking.

"The data reflects the theme of ongoing migration to the regions, as we see more Melburnians seeking out a scenery change in coastal towns and regional cities."

The median price for houses in Bendigo rose to $650,000, up 2.4 per cent for the quarter, while the median for White Hills jumped 20 per cent to $529,000, and in Junortoun, it climbed to $935,000, up 23 per cent.

Long Gully's median was $405,000, a lift of 11 per cent, and in Epsom, the increase was 8.5 per cent to $560,000.

Heathcote's median rose to $498,000 and in Kennington it was $570,000, up almost seven per cent for the quarter. Marong recorded a 6.7 per cent jump to $640,000 and Strathfieldsaye a 6.8 per cent increase to $705,000.

READ MORE:

Units in inner-city suburbs such as Docklands ($555,000) and Melbourne CBD ($580,000) are ranking in the top 20 quarterly growth suburbs while recording median prices under the $600,000 mark. Houses in Melbourne's traditionally more affordable suburbs have also reported strong annual growth.

Mr Docking said despite the stabilisation starting to be seen across Melbourne, governments, both state and federal, need to review some of the fundamentals like property taxes that form a significant part of the cost to acquire and maintain a property.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content: