Property analysis group Domain's 2019 June Quarter House Price report shows 123 homes in Stawell sold for an average of $213,000 in the 12 months to June, an increase of 6.5 per cent on the same time last year.

In Horsham, house prices remained relatively steady at $278,000 across 251 sales, while Ararat saw a drop of 2.1 per cent to $235,000 across 163 sales.

Monaghan's Real Estate principal Terry Monaghan said it was another effect of the lack of new houses being supplied to meet demand.

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"Median house prices in Stawell aren't crazy expensive, but in terms of supply to market stock has been reducing," he said.

"When something comes on the market now it might only stay there for 60 or 90 days. Two or three years ago sellers would have been waiting maybe four to six months.

"I'd advise first home buyers to do their research and speak to a bank before a real estate agent, so they know how much they can get on a loan."

Mr Monaghan said the growth in median prices added something new to Stawell's historically reliable housing market.

"We've tended to have slow growth and high returns," he said.

"If we also get good growth, investors will get capital gains as well as returns on investment, which are around five to eight per cent at the moment.

"That could eventually mean more competition for home buyers from investors, and higher house prices eventually. As it is, a lot of investors in Stawell's property market come from beyond the region."

Horsham's Coller Rathgeber Property Group principal Tim Coller said the median house price reflected the amount for which exactly half of all properties sold for less than and half sold for more than.

He said this meant several houses selling for lower than average prices in a three-month period could cause the median to drop slightly, and not accurately reflect the long-term market trend.