According to CoreLogic data, the Lake Macquarie suburb's median house price jumped from $370,000 to $680,000 between October 2020 and August.

Between January and February alone the median price jumped $135,000.

Avery Property's Paul Avery believed a number of factors had contributed to the huge rise in numbers.

He said the new development at Billy's Lookout had led to an "explosion" in housing supply, and diluted the number of older-style houses with a lower price point.

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"I think it's attributed to its proximity to Newcastle, and probably to an equal extent areas like Warners Bay and Charlestown," Mr Avery said.

"We've seen a lot of the hype being because of people understanding its geographically central location, coupled with a lot of the newer subdivision areas there where people can buy brand new housing.

"I think one of the other things is being on the rail line too is an attractive thing.

"It was quite unfashionable to be on the rail line years ago, but nowadays everybody's looking at fuel costs."

Teralba recorded its first $1 million residential result in December 2020 with the $1.52 million sale of a 1.59 hectare property at 190 The Weir Road.

The vendors built the house in 2014 after paying $165,000 for the property in October 2012.

The suburb has had four other sales of $900,000-plus, three of which have come since May.