Property prices in the San Francisco Bay area sold at the fastest pace in almost nine years in June and prices approached a new record as growing consumer confidence, historically low mortgage rates and job growth helped to boost sales.

A total of 9,386 new and existing houses and condominiums changed hands in nine Northern California counties, up 16% from a year earlier and the most for any month since August 2006, CoreLogic reported.

The median price was $660,000, (£423,000) up 6.8% from a year earlier and 0.8% below the peak of $665,000 reached in June and July of 2007, according to the report.

The US housing recovery has picked up steam this year, led by regions including the San Francisco area, where technology companies have boosted hiring and incomes while historically low interest rates help make housing more affordable even amid rising prices.

US housing starts in June climbed to their second-highest level since November 2007, led by increased activity on apartment projects, the Commerce Department reported.

Also, confidence among builders in the US is now at its highest level since November 2005, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index.