CoreLogic data on median house prices finds Ballarat is experiencing a decrease in sale value

The data found, excluding Melbourne's north-west, Hume, Geelong, Shepparton and Warrnambool and South West areas, home median prices in Victoria experienced an at least 0.1 per cent decrease in sale price when comparing prices from this month to last month. Ballarat was found to have the largest decrease at 0.6 per cent.

Buxton Ballarat director Mark Nunn said he saw the statistics, rather than a "step backwards" for the Ballarat housing market, as a stabilisation in housing prices.

He said despite the decrease, the market was relatively in a "good shape" with the decrease attributable to the spikes in interest rates.

"Whenever the market interest rate increases, which is happening at the moment, buyer demand drops a bit so prices don't sell as high as we may anticipate," Mr Nunn said.

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Ballarat Real Estate general manager Allister Morrison agreed a marginal increase in interest rates is likely to be a contributing factor however, he said this trend was not unusual especially after an election period.

"I think there's probably a number factors at play but prior to the election a lot of people were acting with an element of caution and tended to pause their buying activity to see whether there might be policies that might impact their purchases," Mr Morrison said.

He also said it was typical for the market to see a decline during this time of year.

"People tend to be quieter in the market place over winter and we see supply to be quite subdued over this period."

Mr Nunn added a drop in buyer demand was a result in a lack of competition between potential buyers, which is a contributing factor to Ballarat's stable housing market.

He also admitted he was unsure why Ballarat had experienced the greatest decline in housing prices, especially when compared with other regional towns with similar population sizes.

"I don't know why other areas are growing faster than Ballarat, and I would think we would be on par with places like Bendigo - so it is very interesting," he said.

Mr Morrison believed Ballarat's decline to be attributed to many potential buyers adapting a "wait and see" mentality of purchasing.

"Many people are wanting to move to Ballarat for a 'tree change' as well as for its close proximity to Melbourne but I think a lot people were holding off buying because they may be thinking about bigger life decisions and their job security," he said.

"Statistics like these are relative to transactions and I think out-of-town buyers who are looking to move to Ballarat, but have not, have resulted in fewer transactions because of this 'wait and see' approach."

As for future median house prices in Ballarat, Mr Nunn said he sees the market as being stable for some time.

"Ballarat is a regional city with a fair amount of population growth, with people moving in from Melbourne and interstate - so this will help hold the the marketplace in a pretty good shape," he said.

Conversely, Mr Morrison said he would be unfazed if the market saw an increase in buyers resulting in a simultaneous increase in sale prices in the next few months.

"I wont be surprised to see more people jumping back into the market," he said.

The median sale price of a home in Ballarat this month is $606,240.271 compared to a median price of about $620,000 last year.

LAND SALE IN DEMAND

Mr Nunn disclosed Buxton Ballarat was seeing a surge in land sales, with land supply unable to meet consumer demands.

"Land sales have shot up dramatically in the last 18 months," he said.

"There's not enough land for sale in the market place so there will be a rezoning of land in Ballarat in the next two to five years to get more land available to meet demands."

Mr Morrison echoed similar sentiments saying Ballarat had become an ideal destination for first home buyers wanting to build an idyllic, suburban home.

"Land supply has been constrained in Ballarat and land demand continues to be strong," he said.

"Interest from Melbourne is particularly strong as Ballarat offers the opportunity for many people to build their first home at an affordable price while still providing them access to the same facilities and services they would in the city."

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