A 5 bedroom home on a 550 square metre block sold in the western Sydney subrurb of Rooty Hill - 42 kilometres west of the CBD - for $1 million a few weeks ago.
Nidus Group real estate agent, Ismail Ates, says it was a record price for the area.
"It acheived a million dollars in the first open home, we had thirty people come through the open house and it sold smack bang on that day so it took 7 days to sell"
He adds that soaring prices, are changing the demographics of the community.
"Definitely, we're seeing a big mix of buyers come through, starting to see heaps of the Asian community come through the property, we're also seeing buyers from out of the area."
At $1 million, the Rooty Hill property is just below the new Sydney median house price according to property group Domain.
The median price in Australia's biggest city rose more than 10 per cent last year to $1.1 million.
Prices also rose by 10 per cent in Hobart and Melbourne.
Adelaide's median price hit more than $500 million dollars for the first time ever.
Domain's Chief Economist, Andrew Wilson, adds that nationally - the median house price is now more than $780 thousand - up 7.7 per cent in the last 12 months.
"One of the key drivers for the Sydney and Melbourne market is strong migration. Net migration into New South Wales in the last financial year was over 60,000, and net migration into Victoria over 80,000 last financial year and of course that is a key driver of demand."
Domain says prices for units rose 3.4 per cent - but around the country it was a mixed bag*.
Values fell last year in Hobart, Brisbane, Perth and Canberra - but rose in the other capitals.
Andrew Wilson says it's making it harder for those wanting to make the switch away from renting - especially in the larger cities.
"With rents rising now in Melbourne and Sydney faster than incomes, it means that those personal balance sheets of tenants are going to come under real stress."
Dwelling price growth is expected to ease this year.
NAB has revised up its forecast for national house price growth from 0.4 per cent to 3.4 per cent.
Apartment prices, which were expected to fall, are now predicted to rise by nearly 1 per cent.
This slow down should apease the Reserve Bank board - but NAB Economist Riki Polygenis says what the RBA will do with official interest rates will depend on the state of the domestic economy.
"And on that front we're still expecting a slowdown of growth into 2018 and believe the RBA will be forced to cut the cash rate in the second half of 2017 to prevent a rise in unemployment in 2018."
