Increase in house prices exceptional: Barfoot 

Source: ONE NewsHousing, property in Auckland

Average sale prices in the Auckland region rose to a 22-month high in October, real estate agency Barfoot & Thompson says.

The agency's average sale price in October was $544,745, up 5.8% on September and 4.8% on October 2008.

"The prices achieved in October were exceptional, and we have not seen average prices comparable to this since December 2007," says Barfoot & Thompson managing director Peter Thompson.

Thompson says the number of properties on the market was the highest since March 2008 with 1,676 new listings.

And, as sellers returned to the market in force, so too did buyers.

"Buyers' responded to attractive interest rates and greater choice, and we sold 871 properties - an increase of 73% on the number sold in the same month last year," he says.

Rental activity was also strong, with the average weekly rent managed by the company at $403 - the first time it has exceeded $400.

This was $19 (4.9%) higher than September and $18 more than October 2008.

"This is the highest increase in rents in a month we have witnessed in seven years," Thompson says.

Thompson says this may be an early sign that rentals are about to move to a "higher level".