The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) fell one point to 61 in December, marking the second consecutive monthly decline in the index after a 10-year high in October.
All three index components posted losses for the month. Current sales conditions fell one point to 66, while the indices for buyer traffic and sales expectations in the next six months fell two points each to 67 and 46 respectively.
“For the past seven months, builder confidence levels have averaged in the low 60s, which is in line with a gradual, consistent recovery,” said NAHB Chief Economist David Crowe. “With job creation, economic growth and growing household formations, we anticipate the housing market to continue to pick up traction as we head into 2016.”
“Overall, builders are optimistic about the housing market, although they are reporting concerns with the high price of lots and labor,” says NAHB Chairman and home builder, Tom Woods.
The three-month moving averages for regional HMI scores were mixed, increasing three points in the west to 76, and one point in the Northeast to 50. Scores fell two points to 58 in the Midwest and one point in the South to 64.
Read the NAHB release.