Auckland house prices edged up 1 percent last month from October to a 23-month high average of $550,217, real estate company Barfoot & Thompson says.
The price is 9.9 percent ahead of the average for the same month last year, and Barfoot & Thompson managing director Peter Thompson said Auckland property has now recovered all the losses experienced over the past two years.
"The level of activity and strength of prices in the housing market is a strong signal that in Auckland at least property has returned to being seen as a sound, medium to long-term investment option," Mr Thompson said today.
But compared to the height of the property boom in 2007, current activity was more rational and measured.
"While low interest rates are a factor, buyers are committing on the basis of the property meeting their check lists and views about value for money.
"They are not being driven by concerns that they must act or they might miss out."
For the second consecutive month Barfoot & Thompson listed more than 1600 new properties, which helped keep the number of properties for sale at more than 5600, the highest number of available listings since May, Mr Thompson said.
In November Barfoot & Thompson sold 862 properties, down 1 percent of the number for the previous month and 57.8 percent higher than in November last year.
The average weekly rent achieved during November was $397, down $5 a week from October but $16 a week higher than for November last year.
The company let 676 properties in November compared to 760 for the previous month.
