The average home price in the United States in August reached a new record, surpassing $1 million for the first time.
In addition, prices for new and used homes soared by 8% year-over-year to $1.072 million.
The national median home price hit a record high of $1,093,500 in August.
The median home value for all homes in the U.S. was $1m, up $25,000.
Home sales increased for the fourth straight month, up 6.6% year over year to 4.53 million homes sold.
But sales of condos, condos in apartments, and single-family homes were down by 0.2% to 5.96 million units.
In fact, the National Association of Realtors said sales of single-story detached homes fell 6.4% year to July.
And sales of all other homes were up 8.9% year, including new home sales, up 10.2%.
The national home prices and median home values rose despite the recent global recession and the ongoing global slowdown.
And while prices for existing homes are rising at a faster rate, median home prices are down 2.7% year for all types of homes.
The national average home sale price was $5.842 million in August, down 1.9%.
The National Association for Home Builders (NAHB) said a shortage of available homes was leading to increased demand, especially in markets with high home prices.
Home builders said a large number of projects are in flux, and many are in desperate need of cash, which means the supply of homes to build is constrained.
In a July report, the NAHB said more than 50% of new homes in metropolitan areas in the Southeast were being built for sale, but the national average for those markets was less than 40%.
“Demand has outpaced supply,” said Dan Riedel, chief economist at NAHB.
“We’re seeing the supply crunch in the Northeast, with a shortage in the Midwest and Midwest-Southeast.”
Home prices were higher than they have been since 2012, and are up more than 11% since April.
But some homeowners are struggling to keep up.
The average price of a home in New York City rose 4.6%, to $829,500, according to Zillow.
That’s down from May when the average home sold for $944,000, the highest monthly price since January 2011.
The National Association on Mortgage Forecasts predicted the national median price will fall 2% this year, to $3,724,000 from $3.988 million in 2017.
And the median price in Chicago is down 4.9%, to more than $1 billion, from $1 and $2.5 billion.
The housing market is particularly sensitive to changes in inflation.
But even if prices continue to rise, most of the nation’s households will probably remain in the red, said Jason Furman, chairman and CEO of the Council of Economic Advisers, in an interview with ABC News.