Sentiment among homebuilders held steady in March, sustaining a rebound from a recent three-year low on improvement in sales and a brighter outlook for the next six months.
The National Association of Home Builders/Wells Fargo Housing Market Index was unchanged at 62, though just below the median estimate for 63 in a Bloomberg survey, data released Monday showed. Readings above 50 indicate more builders view conditions as good than poor.
The stabilization following a December reading that was the weakest since 2015 shows builders are more upbeat amid the most favorable mortgage rates for buyers in more than a year and a historically robust job market. Two of the three subgauges increased, with measures of present sales of single-family homes and the outlook for purchases over the next six months both rising to the highest levels since October.
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Other recent data showed January existing-home sales, which comprise the bulk of the market, were at the slowest pace since 2015, while new-home sales fell to the weakest pace since October. Builders report lower-priced homes are selling well, though affordability still remains a concern as developers confront challenges such as a shortage of skilled workers, lack of buildable lots and zoning restrictions, NAHB said.
"Builders report the market is stabilizing following the slowdown at the end of 2018 and they anticipate a solid spring home buying season," NAHB Chairman Greg Ugalde, a homebuilder and developer in Connecticut, said in a statement.
Three of four geographic regions improved, led by the Northeast, which rose to 52, the highest since November. The South and West also gained while the Midwest slumped. The Washington-based trade association represents more than 140,000 members in areas ranging from building and subcontracting to design and housing finance.
