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Homebuilder confidence fell in December

Homebuilder confidence slipped in December, but the sector is poised for consistent growth next year. 

The National Association of Home Builders (NAHB) said Tuesday that sentiment in the market for newly built single-family homes fell 1 point, to 61, on the housing index. 

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"For the past seven months, builder confidence levels have averaged in the low 60s, which is in line with a gradual, consistent recovery," said David Crowe, NAHB's chief economist

"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," Crowe said. 

All three index components posted modest losses in December.

The index measuring sales expectations in the next six months fell two points to 67, the component gauging current sales conditions dropped 1 point, to 66, and the index tracking buyer traffic declined 2 points, to 46.

Regionally, the three-month averages showed that confidence rose 3 points in the West, to 76, while the Northeast saw a single-point increase, to 50.

Meanwhile, the Midwest dropped 2 points, to 58, and the South fell 1 point, to 64.

"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, a homebuilder from Blue Springs, Mo.