The latest figures from Auckland's biggest real estate agency showed that nearly half of all the city's homes sold in November changed ownership for more than $1 million.
"The average price at which homes are now selling, compared to June's average when the market found new momentum, is 10.8 per cent. The increase in the median price is 7 per cent," said Peter Thompson, managing director of Barfoot & Thompson.
"At the start of the year, $1 million homes represented about a third of our total sales but for the last two months they have represented just under half of all sales.
"And for the second consecutive month we sold more than 100 homes for more than $2 million."
Sales in November saw the market break average and median price records.
"Buyers are not being deterred by current prices or concerns about whether residential property will hold its value in the months ahead," Thompson said.
"Buyers are convinced that the time is right to buy, and if they have the support of their bank, and can meet the repayments, then they are prepared to commit."
Auckland has now experienced five months of sustained month-on-month growth, and sales during November were the highest they've been in more than five years.
During November, Barfoot and Thompson sold 1551 homes at an average price of $1,055,971 and at a median price of $974,000.
"Only once before – in March 2015 – have we sold 1500 homes in a calendar month," said Thompson.
OneRoof editor Owen Vaughan described the current market trends are difficult to comprehend.
"The words being used to describe the market right now - crazy, insane, unbelievable - are apt when you look at the sales numbers being achieved, not just in Auckland but at a country level," Vaughan said.
"In a year when the market shut down for more than a month and Kiwis were in fear that prices would plummet it beggars belief that the market is acting the way it is."
Vaughan also noted there were signs of the momentum continuing in the final month of the year.
"The huge lift in listings and in auctions in November - we counted more than 320 that Barfoot and Thompson held in one week alone - have contributed to another record sales month. Listings numbers for December, and feedback from agents on booking for January, already point to a busy summer."