"Following an unexpected jump last month, builder confidence has essentially leveled out and is holding at a solid level," said association Chairman Rick Judson, a home builder from Charlotte, N.C. "Many markets continue to improve and this bodes well for future home sales."

The 100-point index is created from a survey on builders’ perceptions on sales and expectations for the next six months. A number above 50 indicates a majority see conditions as good rather than poor.

NAHB Chief Economist David Crowe said he expects to see the index head higher. 

"Rising home prices, historically low mortgage rates and significant pent-up demand will drive a continuing, gradual recovery in the year ahead," Crowe said.  "However, the pace of the recovery could be stronger were it not for rising construction costs and inaccurate appraisals that are keeping some home sales from going through."