Real Estate Institute of Victoria data for June 2022 shows Horsham price rise

The Real Estate Institute of Victoria has revealed Horsham house prices to have risen in the quarter ending in June by 7.1 per cent, outpacing other regional centres.

At the end of June 2021, Horsham's median house price was sitting at $276,000, and has since risen to $394,000 for the end of June 2022.

The figure however was still below the regional Victorian median house price, which was $625,000 for the second quarter of 2022.

Harcourts Horsham principal Mark Clyne said multiple high end property sales in the past quarter had driven up the median house price.

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"There has been a lot of top-end properties sold. There has been a lot of property sold that has been upwards of $800,000 to $1 million," Mr Clyne said.

"A lot of our ex-housing commission houses have also moved from that $140,000 mark to between $200 - 250,000. That will lift a lot of the median price up as well."

The report also found Horsham's median rent to be $420, higher than the state's average of $400 - Horsham also saw a higher rental yield than the state's average, with 5.5 per cent as opposed to Victoria's 3.4 per cent.

Horsham's quarterly house price change was higher in comparison to other cities, with the median price in Warrnambool only rising by 2.1 per cent, Bendigo rising by 5.8 per cent, and Central Ballarat rising by 0.4 per cent.

Further down the highway, Ararat kept pace with Horsham with median house prices rising by 7.7 per cent.

Mr Clyne said the past six months had seen a cooling-off of the so-called FOMO buyer, who had flocked to the region during the COVID pandemic from cities to buy up properties.

"The FOMO buyers have disappeared and we are returning to what looks like a normal market," Mr Clyne said.

"Good properties are still in demand, and they don't require a lot of work, or any work at all. Interest rates are also still historically low, as much as the media wants to say it is doom and gloom it is still very affordable for people."

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Mr Clyne said the exit of Murra Wurra Wind Farm contractors had also freed up a lot of rental properties, reliving a once tight rental market for the city.

"With the exit of wind farm contractors, there is now available rental properties for the first time in four years - a dilemma everyone had been worrying about," Mr Clyne said.

"In the past, we didn't even advertise, we just had people waiting to come in. Now we are back to advertising and promoting rentals."

In the coming years, Mr Clyne said he expects to see an increase in demolitions in Horsham as more people moved to the region, and building new houses and units becomes more attractive.

"Horsham will go through a phase where some of the older houses, the land they are on will double in price in the next few years and it will become quite feasible for houses to be demolished and new units and houses to be built there," Mr Clyne said.

"All in all, the region seems to be upbeat, there are still plenty of people looking to move and relocate. Horsham also has the bonus of mineral sands projects in the not too distant future."

REIV president Richard Simpson said that while there has been discussion on the impact of interest rate rises on house prices, the market remains strong, especially across regional Victoria.

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