Builder confidence in the newly constructed single-family housing market dropped one point month-over-month in December to 61 on the National Association of Home Builders Housing Market Index.
The HMI consists of three components: sales expectations in the next six months fell two points to 67, current sales conditions dropped one point to 66 and buyer traffic decreased two points to 46.
"Overall, builders are optimistic about the housing market, although they are reporting concerns with the high price of lots and labor," said NAHB Chairman Tom Woods in a statement.
Regionally, the three-month average HMI in the West increased three points to 76 and one point in the Northeast to 50. The Midwest saw a drop of two points to 58 and the South decreased one point to 64.
