The National Association of Homebuilders (NAHB) announced on Tuesday its housing market index (HMI) rose one point to 63 in April, the highest reading since October 2018.

Economists forecast the HMI to increase to 63.

A reading over 50 indicates more builders view conditions as good than poor.

Two out of the three HMI components were higher this month. The indicator gauging current sales conditions rose one point to 69, and the component measuring the traffic of prospective buyers increased three points to 47. These gains, however, were offset by a 1-point drop in the measure charting sales expectations in the next six months, to 71 in April.

NAHB Chairman Greg Ugalde said: “Builders report solid demand for new single-family homes but they are also grappling with affordability concerns stemming from a chronic shortage of construction workers and buildable lots.”

Meanwhile, NAHB Chief Economist Robert Dietz added: “Ongoing job growth, favorable demographics and a low-interest rate environment will help to modestly spark sales growth in the near term. However, supply-side headwinds that are putting upward pressure on housing costs will limit more robust growth in the housing market.”