HOUSE prices across the Southern Downs are lower than they were a year ago - but one real estate agent believes Warwick is primed to become an investment hotspot.

Sales data from the Real Estate Institute of Queensland shows a 6.6% fall in median sale prices to $240,000 in Warwick from June 2014 to June 2015.

Houses in Stanthorpe fared only slightly better, dropping 6.4% to $225,000.

But Warwick real estate agent Helen Harm said the Southern Downs was an excellent location for property investors looking for long-term gains.

"This isn't a market where you can buy it and sell it quickly to make a profit," she said. "Warwick is a market where you stick with a property for some time."

She said lower house prices meant there were strong returns on investment for rental properties.

"Traditionally in Warwick if you spent $250,000 on a house you would get $250 per week in rent. Now we're seeing that change.

"I have some houses listed at around $200,000 that are being rented at that $250 per week."

While the markets are down compared to a year before, they have improved on the previous quarter.

Median house prices in Warwick rose 0.7% and 1.7% in Stanthorpe in the quarter.Ms Harm said growing business and infrastructure investment in the area was an example of the increased confidence in the Warwick economy.

- APN NEWSDESK