"Even with this month's drop, builder confidence has remained in the 60s for six straight months — a sign that the single-family housing market is making long-term headway," Woods said. "However, our members continue to voice concerns about the availability of lots and labor."

The index surveys members on existing sales and expectations for the next six months. They rate expectations as "good," "fair" or "poor,” and customer traffic as high to very high," "average" or "low to very low."

A number above 50 on the 100-point index indicates most builders conditions as good or better.

David Crowe, the NAHB’s chief economist, said the drop was likely a small correction.

"The November report is pullback from an unusually high October, and is more in line with the consistent, modest growth that we have seen throughout the year," he said. "A firming economy, continued job creation and affordable mortgage rates should keep housing on an upward trajectory as we approach 2016."