Builder confidence in the new single-family home market turned positive for the first time since January, rising four points to a score of 53 on the NAHB's Fargo Housing Market Index. The index was below the 50-point threshold for much of the year, and has added eight points since May.

The homebuilder confidence index measuring the market for new single-family homes rose four points to a reading of 53 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), according to a July 16 report. The metric marks a key milestone for the market, as any reading over 50 indicates that more builders view sales conditions as good than poor.

"This is the first time that builder confidence has been above 50 since January, and an important sign that it is strengthening as pent-up demand brings more buyers into the marketplace," said NAHB Chairman Kevin Kelly.

All three HMI components posted gains in July. The index gauging current sales conditions increased four points to 57, the measurement of expectations for future sales rose six points to 64 and the gauge of prospective buyer traffic increased three points to 39.

"An improving job market goes hand-in-hand with a rise in builder confidence," said NAHB chief economist David Crowe. "As employment increases and those with jobs feel more secure about their own economic situation, they are more likely to feel comfortable about buying a home."

The HMI three-month moving average was up in all four regions, with the Northeast and Midwest posting a one-point and two-point gain to 35 and 48, respectively. The West registered a five-point gain to 52 while the South rose two points to 51.