According to the latest Core Logic Regional Market Update, Lismore housing values increased by 3.1% in the last quarter.

The median value of a house in the 2480 postcode is now $505,182. The annual increase is 12.9%, while the last five years has recorded an increase of 52%.

R Gordon and Son principal realtor Andrew Gordon told the Lismore App that growth was coming off a low base.

"If you look what's going on down the coast, you can go to Skennars Head and buy a block of land for $1.7 million. That's a block of land, not a house. Whereas, in Lismore, we're still very affordable."

While people getting into the property market will see $505,000 as an expensive entry point, Ballina's median house price is $977,151, to support Andrew's point.

The bulk of the sales in Lismore has been in that $200,000 to $600,000 bracket.

"The flood plain is the most affordable part of Lismore," Andrew added, "There's an attraction to that, and people are taking it up. We have spoken about this before. To put a roof over the head of your family, people will weigh the odds and the risk against that opportunity. And they're taking that opportunity.

"As a result, we're seeing the floodplain become a little bit more competitive, and we're seeing some very good renovations. That's why we are probably seeing a little increase, people are jumping into that market."

"I think that it's competitive in that bracket at the moment. There's a lot of people that fit into that wage demographic, and if you want to get in, well, then there's a limited opportunity. We've seen 600 homes removed from the flood plain, so the ones that are left have been keenly sought after because they're in the bracket of affordability."

Brett McDonald from Raine & Horne Lismore agrees with Andrew that Lismore is viewed as more affordable than our coastal neighbours.

"We've seen this before in Lismore. People will come to Lismore to buy something because they can afford it. Over the autumn and winter, we saw properties that were under $700 to 800,000 getting a lot of attention from multiple buyers.

"There's been quite a few first-home buyers, but it's not limited to those. It would be equally represented by people moving locally, having sold one type of home to move to a different type of home to suit their new needs or areas that they want to live in. But equally, people from out of town moving into the area. I've seen a large number of out-of-towners, so we're really returning to that sort of pre-flood levels.

The middle to top end of the housing market has been pretty steady according to Andrew and Brett.

"The mid- to top-end seems to be steady right now. I know our Eastern cousins have seen dramatic decreases (Ballina down 0.3% and Coffs Harbour down 3.8%). I was talking to an agent the other day who said the figure may be as high as 25% that may have come off some of those dearer homes.

The story was more subdued for rental prices, with an increase of 0.1% for the quarter, leaving a median rent of $565 per week. The annual change is 9% and 34.2% over the last five years.

This still feels expensive for Lismore; however, Ballina is now $745 per week and Coffs Harbour $641 per week.

"Once again, you take 600 homes out of the flood plain, and you can bet your left arm that half of them were investment properties," Andrew Gordon said.

"I know our agency lost 140 in the floods out of the rent roll because they were investment opportunities, and they're not coming back. And we're one of many agents. So once again, demand drives competition, and you'll see the price has become a little more competitive."

"No one's building rental stock. Tell me the last time we saw a block of units built? When was the last time a home was built specifically for investment? Very rarely. People build homes to live in, and that seems to be the outlook."

"Not everyone's going to come to Lismore and buy a house just because they work on the coast. They might be here for a period of time, or they might be working on buying their own home or something like that. We need to replenish our investment stock because there's a lot missing, and in the very near future, I don't see them being replaced."

As for the future of Lismore housing?

"My dream is that the next generation will see Lismore as a dormitory suburb. They won't be able to buy the house next door to their mum and dad because of pricing in that area, but they'll see Lismore is a very good alternative, a financially good alternative. And I'm hoping, in time, if we can allow a certain level of development to flourish, then we will capture that market, and that will be good for us.

"We'll create a ratepayer, we'll see some kids go to schools, we'll see people come and shop locally, and once again, that will create a competitive environment. So, I think Lismore has got a lot of good things going for it right now, we just need some time, I guess, to probably nurture that opportunity and present it to the next generation."

Brett McDonald echos those thoughts: "People from outside the area will want to live in such a fantastic location, and we've got it. It is so well priced compared to coastal properties. So why not come to Lismore purely based on price?"

"But then so many people are realising what a wonderful town it is and what a great place it is to live. And that's not rhetoric that's true. There are so many people coming to the area again from Sydney, Melbourne, Brisbane, the Gold Coast, Ballina, Byron, Mullumbimby, Ocean Shores. They want a piece of our wonderful town."