It seems the optimism surrounding the fourth quarter's steady employment rates may be spilling over onto homebuilders as well.
Unemployment remained at a low 5.8% last month, decreasing 1.2% over the course of 2014 according to the Bureau of Labor Statistics.
This month we've seen the increased buying power continue to inject new life into the housing market, with the Home Builders/Wells Fargo Housing Market Index (HMI) showing December builder confidence rates just below the extraordinarily high level we saw in November.
The HMI, which collects data from key people in the building industry, gauged the level of confidence in the building industry at 57. That's down one point from November's level of 58, but still well above the 50 mark. A rating above 50 shows strong confidence levels in the US building industry.
But although confidence levels remain strong among construction industry professionals, new housing starts showed a clear decrease last month. November 2014 saw housing starts drop 1.6 percent according to a report by the U.S. Census Bureau.
Multi-family housing showed no signs of letting up, with building production climbing 6.7% in November, although new permits for multi-family structures dropped 11 percent, with permits for just 396,000 units being issued.
The 5.4 percent drop in single-family housing starts indicates slow growth in the private home sector. However, permits for single-family homes slipped only 1.2 percent in November, indicating steady ongoing building in this sector.
Freddie Mac predicts an increase of 20% in new housing starts and sales in 2015 compared to 2014, with single-family housing making up the bulk of the anticipated rise in construction.