Confidence among U. S. homebuilders climbed in September as timber prices fell and demand for housing was strong.

National Association of Residential Builders (NAHB) / Wells Fargo & CoData released on Monday showed that builders' confidence index rose to 76 for the first time in five months, up from 75 in August. Economists surveyed by Bloomberg expect the median to fall slightly to 74.

As builders take respite from falling raw material prices, the property market remains strong and prices continue to rise. NAHB said housing affordability will be a key challenge in the coming quarters.

The report also shows that current sales indicators and potential buyer flow indicators are on the rise. Meanwhile, sales expectations for the next six months remain unchanged.