Builder confidence in the market for newly built single-family homes decreased two points to a level of 67 on the National Association of Home Builders/Wells Fargo Housing Market Index in June.
The HMI consists of three components, which all reported losses in June. Current sales conditions fell two points to 73, sales expectations in the next six months went down two points to 76 and buyer traffic dropped two points to 49.
"As the housing market strengthens and more buyers enter the market, builders continue to express their frustration over an ongoing shortage of skilled labor and buildable lots that is impeding stronger growth in the single-family sector," said NAHB Chief Economist Robert Dietz in a statement.
The Midwest and South HMI levels each went down one point to 67 and 70, respectively. The Northeast and West HMI dropped two points to 46 and 76, respectively.
