Builder confidence in newly built, single-family homes in December increased five points to a level of 74 on the National Association of Home Builders Housing Market Index. It was the highest level since 1999.
The HMI consists of three components: Buyer traffic increased eight points to 58, current sales conditions went up four points to 81 and sales expectations increased three points to 79.
"The HMI measure of home buyer traffic rose eight points, showing that demand for housing is on the rise," said NAHB Chief Economist Robert Dietz in a statement. "With low unemployment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family construction sector next year."
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