Builder confidence in the market for newly built, single-family homes fell one point to 56 in January from a revised December reading of 57 on the Housing Market Index.

The average market nationwide is running at 86 percent of normal economic and housing activity, according to the Leading Markets Index.

Home builders generally are optimistic about next year, but slow consumer income growth and other headwinds are creating a fair amount of pessimism for some.

Sales of newly built, single-family homes declined 2.1 percent to a seasonally adjusted annual rate of 464,000 units in November from an upwardly revised strong pace of 474,000 units in the previous month.

Builder confidence in the market for newly built, single-family homes was unchanged in November from a downwardly revised level of 54 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

In all, 64.5 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $64,400.

Green building may be here to stay but finding buyers willing to pay a premium for energy efficiency and sustainability is still a challenge.

The 2012 Survey of Construction from the Census Bureau shows that on average it takes about seven months from obtaining a building permit to completing a new single-family home

All segments of the market—single-family homes, condominiums, and multifamily rental—registered strong increases.