Wellington houses are selling well over rateable value, and in some cases almost double their worth.

In one case, a house in Tiber St, Island Bay, with an RV of $560,000 sold recently for $1,000,001.

Real estate agents from around the region say there is no sign of the market slowing down, meaning one thing – house prices are set to rise even more.

Craig Lowe, of Lowe & Co Realty, said the company sold 28 houses last month with an average sale price of $806,000. Out of those sales, $151,000 was the average premium above the RV.

"We are a hot property market, there is no doubt about it. When you have got an increase in demand there is only one way prices can go, and that is up," he said.

"Money is the cheapest it has been for decades, with interest rates so low and Wellington house stock so low we are ripe for significant prices from here."

Bayley's Wellington regional manager Grant Henderson said his agency too had seen properties sell far in excess of RV.

The current high demand meant some first-home buyers would have to readjust their expectations when it came to nabbing their dream home, he said.

"Youngsters want to have a Miami beachfront home and Aston Martins. That's where they want to start.

"The thing is, people need to buy a boring bach in Tawa. Those kinds of suburbs have good public transport and infrastructure.

"Those are the areas which are going to continue to grow."

Henderson expected house prices to rise between about 8 per cent and 12 per cent over the next six months.

Tommy's Real Estate agent Nicki Cruickshank said listings were so popular at the moment that almost 30 to 40 people were viewing houses before the open home date.

"The open homes are really busy, there are definitely more people going through them than last year. There is quite a bit more urgency because good properties are lasting less than a week."

It was a contrast to last year, when people were often waiting until the open day before viewing a property.

Kerry Buckeridge, from valuation company QV, said the outer suburbs of Wellington were becoming more popular with people entering the market.

"The price is getting a little bit richer for some, not for all. The consequence of that is we are seeing people turning their attention from the traditional first home in the suburbs to something a little further out."

The latest figures released by QV showed northern suburbs such as Tawa, Churton Park and Ngaio had increased in value by 7.1 per cent over the past year to an average price of $515,747.

Houses in the western suburbs still remained the most expensive, with prices increasing 9.3 per cent to an average of $675,068 in the past year.

The average house price in the Wellington region now sits at $485,424.

BY THE NUMBERS

Percentage increase by area February 2015 to February 2016, and average house price:

Kapiti Coast: 4 per cent, $394,815
Porirua: 4.7, $403,647
Upper Hutt: 3.8, $348,819
Wellington North: 7.4, $515,747
Hutt: 4.5, $390,967
South Wairarapa: 7.1, $320,093
Wellington West: 9.3, $675,068
Wellington Central & South: 5.5, $586,012
Wellington East: 7.8, $637,872
Total NZ: 11.6, $556,306