Dive Brief:

• The National Association of Home Builders/Wells Fargo Housing Market Index dipped one point in December to a score of 61, the NAHB reported Tuesday.
• The results came in lower than expected, as economists surveyed by The Wall Street Journal had predicted the index would rise one point to 63.
• All three components measured by the index fell in December, as sales expectations for the next six months dipped two points, current sales conditions lost one point and buyer traffic declined two points. 

Dive Insight:

Despite the slight dip, NAHB Chief Economist David Crowe said the fact that the index has lingered in the low 60s for the last seven months "is in line with a gradual, consistent recovery." 

And although the index slipped again in December — after falling three points in November — it is still well above 50, which indicates most builders are optimistic about conditions in the single-family home market.

"Overall, builders are optimistic about the housing market, although they are reporting concerns with the high price of lots and labor," NAHB Chairman Tom Woods said in a release. Those top concerns have been consistent for several months.

The HMI is the first in a string of housing market reports, as later this week and next week, reports will reveal November data for housing starts, as well as new home sales, existing home sales and pending sales.