Builder confidence in the market for newly-built, single-family homes in August increased one point to a level of 61 on the Housing Market Index—the highest level attained since November 2005, according to the National Association of Home Builders.
The Index is the average of three components, two of which increased in August while one stayed the same compared with July.
Buyer traffic increased two points to 45 and current sales conditions rose one point to 66. The index reporting sales conditions over the next six months remained at 70.
"The fact the builder confidence has been in the low 60s for three straight months shows that single-family housing is making slow but steady progress," said NAHB Chairman Tom Woods in a statement. "However, we continue to hear that builders face difficulties accessing land and labor."
