Following our analysis that indicates that the market for new homes in the U.S. is showing signs of topping out, we can also report that the median cost of a new home with respect to the median household income of a U.S. household is at or near an all time record.

The following chart shows the ratio of the trailing twelve month averages of median new home sale prices to our estimates of monthly median household income peaked in July 2017.

(Click on image to enlarge)

The trailing year average median price of new homes sold in the U.S. has risen to be 5.45 times the trailing year average of our estimate of median household income through July 2017. Preliminary data for August 2017 suggests the ratio has slightly declined with the median sale price of a new home having significantly declined from the previous month, but that figure will be subject to several revisions during the next several months, where we've found that later revisions for this data are most frequently revised upward before being finalized.